Home Headline News DAX PERFORMANCE-INDEX (.GDAXI) opens higher despite market chaos in China

DAX PERFORMANCE-INDEX (.GDAXI) opens higher despite market chaos in China

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DAX PERFORMANCE-INDEX (.GDAXI) opens higher despite market chaos in China

The FTSE 100 and other European stock markets have opened slightly higher, despite China’s Shanghai index plunging almost eight per cent over the coronavirus outbreak.

The UK’s blue-chip index had climbed 0.3 per cent by 8.30am, Germany’s Dax was also 0.3 per cent higher, while France’s CAC 40 had risen 0.2 per cent.

Europe’s gains came in stark contrast to China, where the Shanghai composite index finished 7.7 per cent lower on its first day of trading since the Lunar New Year holiday began on 23 January.

As of Sunday, the coronavirus death toll was 361 and the number of infections stood at around 17,200. When Chinese markets last traded, the death toll was 17 and the infection number 600.

European markets recovered somewhat this morning after a bruising day on Friday which saw the first reported cases in the UK and infections rise on the continent.

Today was also the first trading session since the UK exited the European Union, marking a new chapter in relations between the two sides.

Prime Minister Boris Johnson is due to lay out his plans for trade negotiations with the bloc at 11am. He is expected to say the UK will pursue a looser, Australian-style trade deal rather than one which aims for close alignment.

Technical Indicators

Overall, the bias in prices is: Sideways.

The projected upper bound is: 13,370.76.

The projected lower bound is: 12,713.15.

The projected closing price is: 13,041.95.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 24 white candles and 26 black candles for a net of 2 black candles.

A bullish harami occurred (where the current small white body is contained within an unusually large black body). During a downtrend (which appears to be the case with XETRA DAX PF) this pattern implies an end to the decline as the bears appear to have exhausted themselves.

During an uptrend the bullish harami pattern is bearish as the bears appear to be gaining strength as the bulls weaken.

A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.

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 9.0063. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 8 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 40.27. 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 53 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 -147.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 3 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 sell 5 period(s) ago.

Rex Takasugi – TD Profile

XETRA DAX PF closed up 63.221 at 13,045.190. Volume was 4% above average (neutral) and Bollinger Bands were 5% wider than normal.

Open     High      Low     Close     Volume___
13,033.17013,077.57012,987.53013,045.190 81,389,096
Technical Outlook 
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 13,309.45 13,272.17 12,530.41
Volatility: 23 16 17
Volume: 86,660,816 75,967,264 85,701,216

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 4.1% 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 1 periods.

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