11, November 2016

DAX (a 4-hour chart)

General overview

Shares in European banks remained onto recent highs as investors accepted Trump victory. Markets began to think that Donald Trump and his future economical policy may be not bad for financial stocks as they thought before.

Current situation

The DAX price gapped higher at the open on Thursday. Buyers jumped from 10650 to 10800 but failed to extend their recovery. Prices turned around and moved lower filling the gap after declining back to 10650. Traders continued to advance south heading towards its immediate support at 10600. The index hovered above the moving averages in the 4 hours chart. The moving averages are neutral. The resistance is seen at 10700, the support is at 10600.

MACD remained at the same level which confirms the strength of buyers. RSI oscillator stayed near overbought levels, favoring a move lower.

Trading recommendations

The index is oversold and is likely to test the level 10600. After breaking the level a downward movement will be continued towards 10500.