30, June 2016

Dax (a 4-hour chart)

Dax (a 4-hour chart)

General overview

The European stock markets grew on Wednesday, recovering after a collapse due to the Brexit. The Bonds Market was supported by the ECB statements. The regulator promised to take additional measures to limit the impact of the Brexit as well as of high oil prices.

Current situation

The index started Wednesday with a gap upwards. Then DAX continued its recovery and reached the resistance 9550 where it spent the whole day in a consolidation. The resistance comes at 9760, the support exists at 9550.

The indicators recommend long positions. MACD is in the negative area; its histogram grew, that is a buy signal. RSI bounced from the oversold area and grew upwards. If the oscillator grows further, that will be another buy signal. The Moving Averages (100 and 200) direction is downwards, the 50-day moving is horizontal.

Trading recommendations

The potential growth targets are the resistance levels: 9760 and 10000.