DAX (a 4-hour chart)
European stocks decreased despite the positive statistics in Germany and France.
DAX retreated from the level 10700 on Friday. This was a technical rebound as traders were cutting their long positions to fixate their gains. The price approached the 100-EMA in the 4 hours chart. The 50-EMA broke the 100 and 200-EMAs downwards. The 100 and 200 EMAs are moving upwards, the 50-EMA is still heading south. The resistance is seen at 10700, the support is at 10520.
MACD decreased which indicates the buyers’ positions weakening. RSI bounced from the overbought territory.
DAX my extend its correction and approach the level 10520. If the level holds the index will bounce upwards towards 10700. Should the price break the level 10520 downwards and sellers will push it towards the 10400 – 10350 region.