30, October 2016

DAX (a 4-hour chart)

General overview

European stocks closed lower on Friday, reaching one week low. According to corporate earnings reports Novo Nordisk Gemalto shares lost about 10%.

Current situation

DAX gapped lower at the open and continued moving lower after the gap on Friday. The index extended its losses towards 10600 during the day. The 50-EMA crossed the 100-EMA downwards in the 4 hours chart. The 100 and 200 EMAs are neutral, while the 50-EMA is heading south. The resistance is seen at 10700, the support is at 10600.

MACD is in the negative area. MACD declined which confirms the sellers’ positions strengthening. The RSI is within oversold area.

Trading recommendations

As the most probable scenario, we consider further moving downwards towards the level at 10600.