25, July 2016

Dax (a 4-hour chart)

Dax (a 4-hour chart)

General overview

The Germany Bonds market showed mix dynamics last Friday. The shares of Vonovia SE were the leaders among the DAX30 components. Its shares gained 1.14%.

Current situation

The index closed bullish on Friday. The instrument spent the last day of the week below 10175. All its attempts to grow further were limited by the level. The resistance is at 10175, the support exists at 10000.

MACD decreased which indicates the buyers’ positions weakening. RSI is close to the overbought area which is a buy signal for now.

The bullish 50-EMA broke the 100 and 200 EMAs upwards in the 4 hours chart. The moving averages (50, 100 and 200) are moving upwards.

Trading recommendations

We believe the index will trade sideways on Monday. The instrument might move back and forth in a narrow side range between 10080 and 10175.