DAX PERFORMANCE-INDEX (.GDAXI) stocks rise as markets await new US unemployment record

DAX PERFORMANCE-INDEX (.GDAXI) stocks rise as markets await new US unemployment record

European stocks gained on Thursday as investors braced for the latest batch of weekly unemployment claims in the US and coronavirus cases neared the one million mark globally.

Analysts once again expect an initial jobless figure in the millions, with some estimating that as many as five million Americans signed on for unemployment benefits in the week ending 28 March, up from just under 3.3 million in the previous week.

Consensus estimates suggest that 3.6 million lost their jobs in the period, another all-time record.

The pan-European STOXX 600 index was up by around 0.4%. London’s FTSE 100 rose by around 0.2%.

Germany’s DAX climbed by 0.6%, while France’s CAC 40 was similarly in the green.

“Europe managed a tepid rebound on Thursday,” said Conor Campbell, a financial analyst at Spreadex.

Equities were boosted by a rebound in oil, after China said it would start buying oil for its state reserves and Saudi Arabia said it would support co-operation to stabilise prices. 

Crude oil was trading 9% higher at $22.16 per barrel. Brent was up 10% to $27.28.

“Thursday’s main focus doesn’t arrive until this afternoon: the latest US jobless claims figure. Last week’s reading saw a record 3.283 million people file for unemployment. And if analysts’ expectations are anything to go buy, we could be in for another all-time high already,” Campbell said.

The gains for European stocks also came as the global number of coronavirus infections approached the one million mark.

“As we enter the fourth month since the start of the Covid-19 pandemic, I’m deeply concerned about the rapid escalation and global spread of infection,” said Tedros Adhanom Ghebreyesus, the director-general of the World Health Organization.

Technical Indicators

Overall, the bias in prices is: Downwards.

Note: this chart shows extraordinary price action to the downside.

By the way, prices are vulnerable to a correction towards 10,801.23.

The projected upper bound is: 10,461.91.

The projected lower bound is: 8,448.94.

The projected closing price is: 9,455.42.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 22 white candles and 28 black candles for a net of 6 black candles.

Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 33.0995. This is not an overbought or oversold reading. The last signal was a sell 3 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 39.11. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 7 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 38. This is not a topping or bottoming area. The last signal was a buy 10 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 7 period(s) ago.

Rex Takasugi – TD Profile

XETRA DAX PF closed down -12.210 at 9,532.540. Volume was 85% below average (consolidating) and Bollinger Bands were 83% wider than normal.

Open     High      Low     Close     Volume___
9,587.4509,615.6409,498.1909,532.540 17,941,646
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 9,570.75 11,720.62 12,392.13
Volatility: 75 63 35
Volume: 164,222,592 155,320,128 100,852,592

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

XETRA DAX PF is currently 23.1% below its 200-period moving average and is in an downward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of .GDAXI at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on .GDAXI and have had this outlook for the last 27 periods.

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