DAX PERFORMANCE-INDEX (.GDAXI) face important Fib levels which may give pause to a continuation higher
German DAX 30 trades beneath a Fib level of its own. The 61.8% retracement from the index’s high in January 2018 to its low in December rebuffed attempted moves higher last week and will look to again in the week ahead. Should price break through, the swing-high from September may offer subsequent resistance at the 12,460 level.
That said, the DAX boasts two nearby support levels. First is the upper bound of the index’s range during its 2019 rebound, with another trendline nearby from the highs tagged in January and June of 2018. The line offered some semblance of resistance in mid-April which suggests it may act as a form of support moving forward – albeit weak.
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 11,799.40.
The projected upper bound is: 12,570.74.
The projected lower bound is: 12,105.54.
The projected closing price is: 12,338.14.
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 34 white candles and 16 black candles for a net of 18 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 83.4456. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 11 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 74.62. 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 12 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 108.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 11 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 16 period(s) ago.
Rex Takasugi – TD Profile
XETRA DAX PF closed up 32.580 at 12,315.180. Volume was 1% above average (neutral) and Bollinger Bands were 33% 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: 12,157.86 11,688.24 11,683.25
Volatility: 5 13 18
Volume: 90,118,224 86,528,560 93,058,656
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.
XETRA DAX PF is currently 5.4% 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 very strong flows of volume into .GDAXI (bullish). Our trend forecasting oscillators are currently bullish on .GDAXI and have had this outlook for the last 16 periods. Our momentum oscillator is currently indicating that .GDAXI is currently in an overbought condition. The security price has set a new 14-period high while our momentum oscillator has not. This is a bearish divergence.
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