Dax (a 4-hour chart)
The European stock indices continued to fall. The decline was caused by the uncertainty that came after the London decision to leave the EU.
The DAX30 was bearish on Monday. However we believe that the current drop should be considered corrective. The Eurozone Bonds Market will recover from the current shock and will grow. The index reached a strong technical level 9265. DAX is fairly oversold and it may grow soon. The resistance comes at 9400, the support exists at 9250.
MACD is in the negative area; its histogram decreased. If the histogram remains in the negative area we will get a sell signal. RSI approached the oversold area. If the oscillator remains in the area, that will be a sell signal. The Moving Averages (50, 100 and 200) direction is downwards and that is a sell signal.
If the negative sentiment preserves the index will decrease to 9050.