DAX PERFORMANCE-INDEX (.GDAXI) aims to recover Monday losses

DAX PERFORMANCE-INDEX (.GDAXI) aims to recover Monday losses

DAX PERFORMANCE-INDEX (.GDAXI) aims to recover Monday losses

Weakness yesterday has been replaced with fresh buying, as the DAX looks to create a new higher low around 12,650.

Fresh moves higher will target 12,800 and on from here. Having rallied so strongly since the beginning of the month the index may pause soon to consolidate gains, but the overall outlook for the rest of the year is still strong. A move back below 12,400 would be needed to seriously damage the bullish outlook from here.

Technical Indicators

Overall, the bias in prices is: Upwards.

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

By the way, prices are vulnerable to a correction towards 12,341.84.

The projected upper bound is: 13,155.98.

The projected lower bound is: 12,482.32.

The projected closing price is: 12,819.15.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 32 white candles and 18 black candles for a net of 14 white candles.

An engulfing bullish line occurred (where a white candle’s real body completely contains the previous black candle’s real body). The engulfing bullish pattern is bullish during a downtrend. It then signifies that the momentum may be shifting from the bears to the bulls.

If the engulfing bullish pattern occurs during an uptrend (which appears to be the case with XETRA DAX PF), it may be a last engulfing top which indicates a top. The test to see if this is the case is if the next candle closes below the top of the current (white) candle’s real body.

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 79.8127. 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 67.52. 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 54 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 84. This is not a topping or bottoming area. The last signal was a sell 3 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 up 43.500 at 12,798.190. Volume was 13% below average (neutral) and Bollinger Bands were 39% wider than normal.

Open     High      Low     Close     Volume___
12,702.92012,819.22012,699.85012,798.190 76,218,704
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 12,605.17 12,165.38 11,914.72
Volatility: 17 18 17
Volume: 86,666,200 83,145,408 88,503,912

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 7.4% above its 200-period moving average and is in an upward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume into .GDAXI (mildly bullish). Our trend forecasting oscillators are currently bullish on .GDAXI and have had this outlook for the last 5 periods.

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