DAX (a 4-hour chart)
European stocks sentiment improved due to oil prices growth and as investors began preparing for the ECB meeting this Thursday.
The DAX index ended its 4-day decline and opened on a positive note on Tuesday. The price gapped higher at the open and extended its gains towards 10656, breaking the level 10600 on its way up. Having refreshed the weekly high the index rolled back towards 10600. The price jumped over the 50 and 200 EMAs in the 4 hours chart. The 50 and 100 EMAs maintained their bearish slope, the 200-EMA is neutral. The resistance is seen at 10700, the support is at 10600.
MACD is in the positive area. The histogram grew which indicates the buyers’ strength. The RSI is within overbought area.
A daily close above 10600 will indicate a continuation of the upward movement. Buyers will push the price towards 10700. A close below 10600 may trigger a downward movement towards 10500.