DAX PERFORMANCE-INDEX (.GDAXI) declines turn to consolidation
The DAX has similarly slowed its decline, with the index largely consolidating since Friday’s lows. We have continued to create lower lows, with the subsequent rally bringing about a move into the 76.4% Fibonacci retracement at 12,077.
We would need to see a rise through the 12,217 level to gain confidence of a more bullish period, with investors clearly skeptical of exactly how much stimulus the European Central Bank (ECB) can really introduce given the current rock-bottom rates and ongoing quantitative easing programme.
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 12,826.30.
The projected upper bound is: 12,419.53.
The projected lower bound is: 11,419.48.
The projected closing price is: 11,919.51.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 2 white candles and 8 black candles for a net of 6 black candles. During the past 50 bars, there have been 26 white candles and 24 black candles for a net of 2 white candles.
An engulfing bearish line occurred (where a black candle’s real body completely contains the previous white candle’s real body). The engulfing bearish pattern is bearish during an uptrend. It then signifies that the momentum may be shifting from the bulls to the bears.
If the engulfing bearish pattern occurs during a downtrend (which appears to be the case with XETRA DAX PF), it may be a last engulfing bottom which indicates a bullish reversal. The test to see if this is the case is if the next candle closes above the bottom the current (black) candle’s real body.
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 41.6638. This is not an overbought or oversold reading. The last signal was a buy 1 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 26.78. This is where it usually bottoms. 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 76 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 -80. This is not a topping or bottoming area. The last signal was a buy 1 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 sell 8 period(s) ago.
Rex Takasugi – TD Profile
XETRA DAX PF closed down -182.841 at 11,944.850. Volume was 64% above average (neutral) and Bollinger Bands were 286% wider than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 12,435.36 13,237.69 12,636.07
Volatility: 35 25 19
Volume: 173,045,728 99,370,528 88,458,816
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 5.5% 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 moderate flows of volume out of .GDAXI (mildly bearish). Our trend forecasting oscillators are currently bearish on .GDAXI and have had this outlook for the last 7 periods. Our momentum oscillator is currently indicating that .GDAXI is currently in an oversold condition.