29, September 2016

DAX (a 4-hour chart)

General overview

European stocks were broadly higher on Wednesday on the back of mining and energy-related stocks strengthening. Moreover, investors waited for major oil producers’ meeting outcome.

Current situation

DAX was stronger on Wednesday and traded near the local high. The price extended its recovery and reached the 10520 resistance region. After reaching the level DAX slightly rolled back and erased some of its latest gains. The instrument broke the 50-EMA and tested the 200-EMA in the 4 hours chart. The 50 and 100 EMAs are heading lower, the 200-EMA is moving north. The resistance is seen at 10520, the support is at 10350.

The histogram grew which indicates the sellers’ positions weakening. RSI bounced from the oversold area.

Trading recommendations

The price is struggling with the resistance 10520 to go further. Besides, the 200-EMA stands on its way upward. The DAX index needs to break this barrier to strengthen further. Otherwise, the index will return to a decline.