DAX (a 4-hour chart)
European stocks slightly edged higher amid corporate earnings reports and commodity currencies strengthening. The recovery was limited amid concerns over Italian banks.
DAX extended its consolidative pattern on Tuesday trading comfortably between 11600 and 11500, being unable to set short-term direction. Buyers moved the price to the upper boundary of the range in the Asian session. After touching the level the benchmark moved back and stopped around 11550 post-European open. The price hovered above the moving averages in the 4 hours chart. The price tested the 50-EMA and continued developing well above the moving averages in the 4 hours chart. The moving averages maintained their bullish slope in the same chart. The resistance exists at 11600, the support stands at 11500.
The MACD histogram decreased which is a sell signal. RSI was within the neutral area and headed upwards.
We expect the index to remain in the current range. A clear break of either side is needed to signal fresh direction.