27, September 2016

DAX (a 4-hour chart)

General overview

European stocks opened lower on Monday as financial and energy-related stocks weighed on the shares.

Current situation

The index gapped downwards from 10587 to 10576 in the Asian session on Monday. The price maintained its bearish tone during the European hours. DAX moved towards the immediate support at 10350 at the open of the North American session. The price broke through the 50, 100 and 200 EMAs in the 4 hours chart and advanced from them. The 50-EMA direction is downwards, the 100 and 200 EMAs are heading north. The resistance is seen at 10520, the support is at 10350.

MACD decreased which indicates the strength of sellers. RSI moved towards the oversold area.

Trading recommendations

The 10350 level remains the key support area to watch for. A clear break below the level will trigger the next leg of move for the index. The level 10250 is the next sellers' target. We do not exclude a correction towards 10450.