DAX (a 4-hour chart)
European stocks positive sentiment switched to negative one amid growing concerns over banking crisis in Italy.
DAX encountered significant losses on Wednesday. Prices retreated from the weekly highs and moved lower. The benchmark broke 10700 and approached 10600 in the mid-European session. DAX broke the 50-EMA and approached the 100-EMA in the 4 hours chart. The 100-EMA presented a solid support and may slow down downward trajectory. The 50-EMA pointed higher, while 100 and 200 EMA were neutral. The resistance exists at 10700, the support stands at 10600.
MACD decreased which indicates the buyers’ positions weakening. RSI headed downwards which confirms the strength of sellers.
If pressure persists the 10600 level will remain the key support area to watch for. A break below will open the way towards 10500.