DAX PERFORMANCE-INDEX (.GDAXI) could look to extend their runs higher

DAX PERFORMANCE-INDEX (.GDAXI) could look to extend their runs higher

DAX PERFORMANCE-INDEX (.GDAXI) could look to extend their runs higher

A series of fundamental factors have bolstered the standing of the DAX 30 and CAC 40, which have subsequently pushed through various levels of resistance. As the Brexit saga continues to unfold, the two indices could look to extend their runs higher, but subsequent resistance stands in their way and retail traders are convinced the rally is overdone. With that in mind, the contrarian nature of retail trader data could suggest trend continuation is in store.

That said, resistance to the topside will be of critical importance in the event of sustained bullishness. The immediate hurdle – albeit somewhat minor – resides around 12,700. But more importantly, however, a confluence of resistance marked by the ascending trendline from December and horizontal resistance from July 2018 will look to stall an extension above 12800. Should the two levels be surmounted, the next notable area of resistance may rest at 13200.

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 12,228.01.

The projected upper bound is: 13,025.64.

The projected lower bound is: 12,324.45.

The projected closing price is: 12,675.05.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 8 white candles and 2 black candles for a net of 6 white candles. During the past 50 bars, there have been 32 white candles and 18 black candles for a net of 14 white candles.

A long upper shadow occurred. This is typically a bearish signal (particularly when it occurs near a high price level, at resistance level, or when the security is overbought).

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 87.8072. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 7 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 63.94. 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 50 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 121.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 6 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 3 period(s) ago.

Rex Takasugi – TD Profile

XETRA DAX PF closed down -15.160 at 12,654.950. Volume was 13% above average (neutral) and Bollinger Bands were 13% wider than normal.

Open     High      Low     Close     Volume___
12,655.32012,814.49012,647.86012,654.950 99,302,192
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 12,329.20 12,086.07 11,876.12
Volatility: 19 19 18
Volume: 84,479,696 84,789,336 88,713,656

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 6.6% above its 200-period moving average and is in an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. 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 1 periods.

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