DAX (a 4-hour chart)
European stocks edged lower despite positive earnings reports from Deutsche Bank and Barclays. The commodity sectors weakening led losses in
DAX enjoyed a mixed session through trade on Thursday. The index was growing during the Asian hours and turned lower post-European open. Prices were able to strengthen to 10778 where sudden downward impetus sent prices below the current support 10700. Buyers did not have strength to recover, the benchmark got under selling pressure on any up-move above the level. The price failed to take out the 50-EMA which provided a strong resistance for it. The 50-EMA rejected the DAX index downwards, the price got under 100-EMA which provided additional resistance for the price. The resistance is seen at 10700, the support is at 10600.
MACD is in the positive area. The histogram decrease which indicates the buyers’ positions weakening. RSI was neutral during the day.
The level 10800 seems the next probable bullish target. A daily close below 10700 might force the DAX index to resume its downward trajectory.