DAX PERFORMANCE-INDEX (.GDAXI) continue week’s horizontal trend at start of trading
German stocks continued the horizontal trend and remained flat at the start of trading on Wednesday, with the benchmark DAX index opening at 12,361.23 points, down 11.38 points, or 0.09 percent.
The biggest winner among Germany’s largest 30 companies at the start of trading was the producer of high-tech polymer materials Covestro, up 1.47 percent, followed by payment service provider Wirecard with 1.03 percent and utility company E.ON with 0.53 percent.
U.S. investment bank Goldman Sachs upgraded its rating for Covestro from “Neutral” to “Buy” on Wednesday and raised its price target from 48 to 53 euros (currently 44.50 euros).
Earnings expectations for the plastics specialist is expected to rise again for the first time since mid 2018, said Goldman Sachs analyst Georgina Iwamoto, adding that investors should not miss out on this change of mood.
The euro declined slightly by 0.12 percent on Wednesday, traded at 1.1059 U.S. dollars.
Shares of Deutsche Post, Germany’s largest postal company fell by 1.76 percent, making it the biggest loser at the start of trading on Wednesday.
Overall, the bias in prices is: Upwards.
The projected upper bound is: 12,747.82.
The projected lower bound is: 12,032.07.
The projected closing price is: 12,389.94.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 9 white candles and 1 black candles for a net of 8 white candles. During the past 50 bars, there have been 31 white candles and 19 black candles for a net of 12 white candles.
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 51.1088. This is not an overbought or oversold reading. The last signal was a sell 2 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 64.67. 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 30 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 73. This is not a topping or bottoming area. The last signal was a sell 2 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 20 period(s) ago.
Rex Takasugi – TD Profile
XETRA DAX PF closed up 17.010 at 12,389.620. Volume was 21% below average (neutral) and Bollinger Bands were 52% 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: 12,319.37 12,041.19 11,726.38
Volatility: 8 19 19
Volume: 87,400,000 86,547,928 90,575,944
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 is currently 5.7% 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 12 periods.
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