DAX PERFORMANCE-INDEX (.GDAXI) bullish momentum holding well with small daily corrections
DAX bullish momentum holds well with small daily corrections making lower lows and higher highs as the Dax benchmark trades above all major daily moving averages and inside the ascending channel which started back in December 2018.
On the upside where traders focus shifted, the immediate resistance is at 13,171 today’s top, a convincing break above might drive the index up to 13,368 the high from January 29th, 2019. Bullish momentum for Dax benchmark will be intact as long as the index trades inside the ascending channel which started back in December 2018.
On the flip side, immediate support for DAX index stands at 13,019 today’s low, while sellers below that level will target the low from October 23rd at 12,700. Next support level for the index stands at the 50-day moving average at 12,376.
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 12,564.77.
The projected upper bound is: 13,463.52.
The projected lower bound is: 12,870.03.
The projected closing price is: 13,166.78.
A big white candle occurred. This is generally considered bullish, as prices closed significantly higher than they opened. If the candle appears when prices are “low,” it may be the first sign of a bottom. If it occurs when prices are rebounding off of a support area (e.g., a moving average, trendline, or retracement level), the long white candle adds credibility to the support. Similarly, if the candle appears during a breakout above a resistance area, the long white candle adds credibility to the breakout.
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 34 white candles and 16 black candles for a net of 18 white candles.
A rising window occurred (where the top of the previous shadow is below the bottom of the current shadow). This usually implies a continuation of a bullish trend. There have been 8 rising windows in the last 50 candles–this makes the current rising window even more bullish.
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.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 75.7201. 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 74.28. This is where it usually tops. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 3 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 170.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 3 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 15 period(s) ago.
Rex Takasugi – TD Profile
XETRA DAX PF closed up 175.230 at 13,136.280. Volume was 0% below average (neutral) and Bollinger Bands were 42% wider than normal.
Open High Low Close Volume___
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 12,907.52 12,375.91 11,993.59
Volatility: 9 15 17
Volume: 79,748,744 81,750,064 88,397,832
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.
XETRA DAX PF gapped up today (bullish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
XETRA DAX PF is currently 9.5% above its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. 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 13 periods. Our momentum oscillator is currently indicating that .GDAXI is currently in an overbought condition.
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