12, September 2016

DAX (a 4-hour chart)

General overview

European stocks keep showing disappointment over the latest ECB decision to leave rates unchanged. 

Current situation

In the trading on Friday, September 9, the DAX traded lower on the back of disappointing statistics from the EU. The price remains within a narrow bullish channel. Sellers pushed the price to its lower boundary. The 4 hours chart shows that the price is currently struggling with a bullish 50 and 100 EMAs. The moving averages direction is upwards. The resistance is seen at 10700, the support lies at 10520.

The MACD indicator decreased which indicates the buyers’ weakening. RSI is moving from the overbought territory.

Trading recommendations

The price may decrease to 10520. A cut through here will aim the index at the 10440 mark.