23, September 2016

DAX (a 4-hour chart)

General overview

European stocks extended their growth on Thursday after the Fed’s expected decision to put the rates on hold.

Current situation

DAX looks very bullish now. The price continued to advance north during the course of trades on Thursday. The index is approaching the resistance level 10700. The DAX index headed away from the moving averages in the 4 hours chart. The 50 and 100 EMAs are heading lower, the 200-EMA kept advancing north. The resistance is seen at 10700, the support is at 10520.

MACD entered the positive area. The histogram grew which indicates the buyers’ strength. RSI is approaching the overbought area.

Trading recommendations

The overall outlook remains bullish. A break above 10700 would open the way to 10900. DAX may slightly roll back in the Asian session to presume its growth on Friday.