DAX (a 4-hour chart)
European shares traded higher amid mining stocks strengthening alongside with Wire Card and Bouygues shares.
The index traded in a wide range between 10700 and 10800 during the first part of the day. Sellers seemed to be getting more control as weak buyers failed to retake the 10800 mark. The index sharply moved below 10700 and tested 10600 post-European open. The price tested the 50-EMA in the 4 hours chart. The moving briefly slowed down the index decline. The moving averages presented modest bullish slopes. The resistance is seen at 10700, the support is at 10600. MACD decreased which indicates the buyers’ positions weakening. RSI left the overbought area and moved south.
The overall picture is bearish now. Firm break below 10700 handle would open the way to 10600 and further out to 10500.