DAX holds neutral stance in the short-term

By FXStreet Stocks in Europe ended the day generally higher, supported by a recovery in oil prices, which lead energy-related shares higher. Nevertheless, the German DAX closed 17 points lower at 9,495.40, weighed by poor European data, and diminishing optimism among investors, after G20 policymakers failed to come up with new measures to fight the ongoing economic slowdown.

Automakers suffered the most, with BMW and Daimler down 1% each, although Volkswagen added 0.5%.

DAX technical view

“From a technical point of view, the daily chart shows that the index remains above a bearish 20 SMA, while the technical indicators stand in positive territory, although losing their upward strength, not enough to confirm a downside continuation for this Tuesday,” said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the technical stance is neutral as the index is actually hovering around its 20 and 100 SMAs, both horizontal some points below the current level, while the Momentum indicator has turned flat within positive territory, and the RSI indicator turned south around 51.”

Support levels: 9,368 9,281 9,220. Resistance levels: 9,507 9,586 9,674.
For more information, read our latest forex news. …read more

Source:: FX Street