29, November 2016

DAX (a 4-hour chart)

Current situation

DAX gapped lower at the open on Monday. The price jumped from 10700 to 10680 and continued advancing south after the gap. The benchmark extended its losses towards 10600 in the European session. After snapping the level the price bounced and remained above the level ahead of the NY opening. The price bounced off the 50-EMA and tested the 100 and 200 EMAs in the 4 hours chart. The resistance exists at 10600, the support stands at 10500.

MACD entered the negative area. RSI advanced south which confirms the current downward movement.

Trading recommendations

A sharp breakout below 10600 could spark a further incline towards 10500 in the coming days.