DAX index could be moving higher becuase there are more bull signals
Markets Focus On Earning
Earnings are the main focus for the markets and the positive optimism is boosting the confidence amidst traders today. The geopolitical tensions have taken the backseat once again as traders have gathered that the situation between Saudi Arabia and the U.S. isn’t going to escalate. The evidence of this is in a much softer stance of President Trump. The Crown Prince is still denying that he knew anything about Khasoggi’s death. The world may not believe this but President Trump is certainly happy to chew this. Although the president has issued another statement to full fill the formality in which he has said that it will be bad if Saudi Price knew of Khasoggi’s fate. The reality is that Trump is facing internal pressure because Saudi Arabia is clearly the beneficiary of his administration’s plan to tighten sanctions on Iran. Mid-term elections are here and Trump cannot afford the stock market to be in turmoil or escalate the geopolitical tensions.
The DAX index struggles to break above the downward trend (shown in orange) on a 4-hour time frame. This shows that the bears are still in control of the price. However, it is important to keep in mind that bulls are picking up momentum because the RSI is moving higher and as long as this doesn’t start to tilt lower, the momentum to the upside would continue. The Balance of Power is still with the bulls but it is fading and this isn’t that positive. We need to see this improving not improving. There is a possibility that the price may close to its 20-day moving average (shown in blue) before it pops back up again. The 50-day moving average is below the 100-day moving average (50-day shown in yellow and 100-day shown in green). This is another bear signal, however, if the price breaks above the 50-day moving average, that would send a powerful bull signal
The support is shown by the green horizontal line
The resistance is shown by the red horizontal line
