17, October 2016

DAX (a 4-hour chart)

General overview

European stocks opened higher on Friday following the China’s CPI positive report.

Current situation

The index had a positive day on Friday. DAX continued its Thursday's recovery and extended its gains during the European hours. Buyers drove the price to 10600 where DAX seems to have found a strong resistance. After touching the level the price rolled back. The price broke the 50, 100 and 200 EMAs in the 4 hours chart. The moving averages are mixed with 50 and 200 EMAs going lower and the 100-EMA moving north. The resistance is seen at 10600, the support is at 10500.

MACD grew which indicates the sellers’ positions weakening The RSI oscillator moved upwards.

Trading recommendations

Bullish sentiments are popular now. Once we break above the 10600 level, we think that the 10700 level will be next.