13, June 2016

Dax (a 4-hour chart)

Dax (a 4-hour chart)

General overview

On Friday, the European stock indexes fell due to oil prices decrease and Mario Draghi’s comments.

Current situation

The index started Friday with a gap down. The price fell from 10085 to the mark 9760. The DAX broke on its way the resistance 1000 and touched the level of 9760. The resistance comes in at 1000, the support is at 9760.

MACD is in the negative area that is a sell signal. RSI is in the oversold area. The index fell through Moving Averages 50, 100 and 200. The level 9760 is a strong support on the daily chart.

Trading recommendations

The index is oversold. We expect a correction after a three days decrease. Shall the Dax30 increase it will grow to 1000. The support 9760 does not let the index to fall. If this level is broken DAX30 will fall deeper to 9570.