12, August 2016

Dax (a 4-hour chart)

Dax (a 4-hour chart)

General overview

DAX traded higher on Thursday as Retail, Consumer & Cyclical and Technology supported the index. The index gained about 0.86% by the end of the trades.

Current situation

DAX was in a buy mood and traded higher on Thursday. The price could escalate up to 10740 where it set a new weekly high. The resistance is at 10700, the support stands at 10520.

Indicators remained within the positive territory. MACD grew which indicates the buyers’ positions strength. RSI entered the overbought area.

The price moved away from the 50, 100 and 200 EMAs which extended higher.

Trading recommendations

The price may pull back from the fresh highs. Sellers can return the price below 10700. If the price fixates over 10700 this could lead to renewed buying momentum, possibly towards 10900.