DAX PERFORMANCE-INDEX (.GDAXI) Resumes Higher
DAX shows an incomplete Elliott Wave sequence from December 27, 2018 low favoring further upside. The rally from August 15, 2019 low (11266.48) is unfolding as an impulse Elliott Wave structure where wave 1 ended at 12814.49 and wave 2 pullback ended at 12607.06. Wave 3 remains in progress and the internal subdivides in 5 waves of lesser degree. Up from 12607.06, wave ((i)) ended at 12986.49 and wave ((ii)) pullback ended at 12795.09. The Index has resumed higher again in wave ((iii)) towards 13308.26 and wave ((iv)) pullback is proposed complete at 13137.88. Expect Index to extend higher 1 more time to end wave ((v)) of 3, then it should pullback in wave 4 to correct cycle from October 18 low before the rally resumes again in wave 5.
Near term, while dips stay above 12607.06, expect the Index to extend higher. We don’t like selling the Index and expect buyers to appear in any dip in the sequence of 3, 7, or 11 swing for more upside. Possible target higher is 100% Fibonacci extension from December 2018 low which comes at 13660 – 14221. The Index still needs to break above wave ((iii)) at 13308.26 to avoid a double correction. If the Index instead turns lower and breaks below 13137.88, then the Index is doing a double zigzag. In this case, it will still find support after it ends a 7 swing pullback
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 12,776.95.
The projected upper bound is: 13,535.98.
The projected lower bound is: 12,946.07.
The projected closing price is: 13,241.02.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 31 white candles and 19 black candles for a net of 12 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).
Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.
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 44.2652. This is not an overbought or oversold reading. The last signal was a sell 6 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 65.96. 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 4 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 77. This is not a topping or bottoming area. The last signal was a sell 6 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 3 period(s) ago.
Rex Takasugi – TD Profile
XETRA DAX PF closed up 14.110 at 13,221.120. Volume was 20% below average (neutral) and Bollinger Bands were 26% narrower 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: 13,226.00 12,658.05 12,105.22
Volatility: 9 15 17
Volume: 82,633,960 84,571,024 87,941,056
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 9.2% above its 200-period moving average and is in an upward trend. Volatility is low as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of .GDAXI at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on .GDAXI and have had this outlook for the last 24 periods.