DAX PERFORMANCE-INDEX (.GDAXI) fall into red as US impeachment looms
Most European and US markets slumped yesterday after an upbeat start to the day was eroded by news the US Congress is moving ahead with impeachment efforts against President Donald Trump.
House Speaker Nancy Pelosi ordered articles of impeachment to be drawn up that could lead to a trial in the Senate, saying Trump’s abuse of power for political benefit “leaves us no choice but to act”.
Trading had been in positive territory on renewed hopes for China-US trade talks after a report said a deal could be finalised by the end of next week.
British stocks were nonetheless held back also by a rise in the pound’s value against other major currencies, which limits profits at companies that earn substantial amounts of their revenues in US dollars.
London’s FTSE 100 lost 0.7% to 7,137.85 points, Frankfurt’s DAX 30 was down 0.7% to 13,054.80 and Paris’s CAC 40 was flat at 5,801.55 points at the close yesterday.
The pound was in demand as polls suggest that Prime Minister Boris Johnson’s Conservatives would win a majority at next week’s general election, giving him a mandate to push through his Brexit agreement and avert a no-deal divorce.
Sterling is up more than 1.5% this week to the dollar, as it appears likely that the Conservative Party will win a majority in next week’s election and end 3-1/2 years of Brexit-related uncertainty by taking Britain out of the European Union.
That has given a boost to the euro, which has also benefited from recent better-than-expected data. It has gained 0.6% against the dollar this week.
Overall, the bias in prices is: Upwards.
The projected upper bound is: 13,388.55.
The projected lower bound is: 12,753.88.
The projected closing price is: 13,071.21.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 28 white candles and 22 black candles for a net of 6 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 32.7066. 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 49.12. 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 sell 16 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 -69. 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 15 period(s) ago.
Rex Takasugi – TD Profile
XETRA DAX PF closed down -85.771 at 13,054.800. Volume was 35% below average (neutral) and Bollinger Bands were 59% narrower than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 13,156.51 12,846.10 12,222.60
Volatility: 16 16 16
Volume: 71,039,920 79,295,768 87,252,264
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 6.8% above its 200-period moving average and is in an downward 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 volume flowing into and out of .GDAXI at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on .GDAXI and have had this outlook for the last 3 periods.