22, September 2016

DAX (a 4-hour chart)

General overview

European stocks opened higher after the BoJ announcement its new monetary policy measures.

Current situation

The price gapped higher in the Asian session on Wednesday. The index jumped from 10400 to 10430. Buyers were able to extend a recovery towards 10520 where the upward momentum faded and the price rolled back. DAX shortly broke the 200-EMA upwards and immediately returned below the line. The 50-EMA is crossing the 200-EMA downwards in the 4 hours chart. The 50 and 100 EMAs are moving downwards, the 200-EMA is advancing north. The resistance is seen at 10520, the support lies at 10350.

MACD indicator is at the centerline. If the histogram enters the positive territory, that will indicate buyers’ growing strength. If MACD returns into the negative area the sellers will take control over the market. RSI bounced from the overbought area.

Trading recommendations

To trigger additional upwards momentum towards 10700 the price needs to break the level 10520. We cannot rule out the chance that DAX would return to 10350.