11, October 2016

DAX (a 4-hour chart)

Current situation

DAX gapped downwards on Monday, but failed to move lower. Prices refreshed a daily low at 10430, turned around and rallied towards 10600. DAX broke the level 10500 on its way upwards. After touching the level 10600 the price slowed down and remained around the level. The moving averages retained mixed signals yesterday. The 100-EMA is steadily bearish, the 50-EMA has just turned down, the 200-EMA is neutral. The resistance is seen at 10600, the support is at 10500.

MACD grew which indicates the buyers’ positions strengthening. The RSI oscillator moved upwards.

Trading recommendations

If the upwards pressure persists the price will break the level 10600 to extend its gains. If DAX fails to reclaim the level prices may fall below 10500.