24, October 2016

DAX (a 4-hour chart)

General overview

European stocks edged higher on Friday amid a weaker euro and strong corporate earning reports.

Current situation

The DAX index traded bearish on Friday. The prices stayed above the level 10700 during the European trades. However, the index gets under selling pressure on any up-move from the level. DAX moved below the level ahead of the New York session and returned above the level at close of trade. The moving averages are pointing higher in the 1 hour chart. The 50-EMA crossed the 100 and 200 EMAs upwards. The resistance is seen at 10800, the support is at 10700.

MACD decreased which indicates the buyers’ positions weakening. RSI remained within positive area.

Trading recommendations

In order to take a good position we will wait for prices to break below 10700. A solid consolidation below the level will indicate a growing strength of sellers. In this potential scenario the price will drop to 10600.