14, October 2016

DAX (a 4-hour chart)

General overview

European stocks opened lower on U.S. rate hike talk. Weak Chinese Trade balance report renewed concerns over the world strength of the economy.

Current situation

DAX gapped lower at the beginning of the day, the price dropped from 10530 to the mark 10430. The index continued to move lower during the day. DAX set a weekly low at 10348. The price broke the 50, 100 and 200 EMAs downwards and moved away from them. The moving averages present a slightly bearish slope in the 4 hours chart. The resistance is seen at 10400, the support is at 10300.

MACD is in the negative area. The MACD histogram decreased which indicates the sellers’ strength.  RSI is in the oversold area.

Trading recommendations

The market switched to bearish tone. We believe that the next level to focus on is 10300.