12, October 2016

DAX (a 4-hour chart)

DAX traded mixed on Tuesday. Investors expect new clues over the Fed rate hike and OPEC deal to cut production.

Current situation

DAX gapped downwards on Tuesday, but failed to move lower. The price pierced the level 10600, turned around and grew above the level. DAX extended its gains up to 10700 where the bullish spike faded and prices slightly moved back. The 200-EMA is neutral in the 4 hours chart, while the 50 and 100 EMAs are moving lower. The resistance is seen at 10600, the support is at 10500.

MACD grew which indicates the buyers’ positions strengthening. The RSI traded within positive territory.

Trading recommendations

In the scenario where buyers keep control the price is expected to rise towards 10700. Alternatively, a break below 10600 will lead the price towards 10500.