DAX PERFORMANCE-INDEX (.GDAXI) Rises After US-China Trade Deal

DAX PERFORMANCE-INDEX (.GDAXI) Rises After US-China Trade Deal

DAX PERFORMANCE-INDEX (.GDAXI) Rises After US-China Trade Deal

German stocks advanced on Thursday after the United States and China signed a trade truce, helping ease investors’ concerns of further escalation in the costly conflict.

Some questions still remain over whether President Donald Trump’s efforts to rewrite the economic relationship with Beijing will ever go any further.

The benchmark DAX was up 51 points, or 0.38 percent, at 13,483 after declining 0.2 percent in the previous session.

Automakers were subdued, with Volkswagen shares falling more than 1 percent.

Europe’s passenger car demand increased for the fourth straight month to log the highest December total on record, data from the European Automobile Manufacturers’ Association revealed today.

Passenger car sales surged 21.7 percent from last year, but this was partially due to low base effect, as registrations decreased 8.4 percent in December 2018. Sales totaled 1.21 million units.

The agency said specific market changes also contributed to the exceptional growth in December.

Meal-kit delivery company HelloFresh soared 8.5 percent after its preliminary 2019 results topped forecasts.

Bayer was marginally higher. WuXi Biologics Germany GmbH will take over the operations of one of Bayer’s final drug product manufacturing plants in Leverkusen, Germany, and purchase the associated equipment, in combination with a long-term lease contract for the building.

Evotec SE, a drug discovery alliance and development partnership company, rallied 2.3 percent. The company announced that its Seattle-based subsidiary Just – Evotec Biologics, Inc. has established a collaborative relationship with OncoResponse, Inc., an immuno-oncology focused biotech company.

Nivea maker Beiersdorf fell over 1 percent after reporting its fiscal 2019 results.

In economic releases, Germany’s consumer price index rose 1.5 percent year-on-year in December, following a 1.1 percent increase in November and October, final data from the Federal Statistical Office showed. This was in line with initial estimate.

The latest inflation was the highest since July, when it was 1.7 percent.

Technical Indicators

Overall, the bias in prices is: Upwards.

The projected upper bound is: 13,703.48.

The projected lower bound is: 13,177.89.

The projected closing price is: 13,440.68.

Candlesticks

A black body occurred (because prices closed lower 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.

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 59.9007. This is not an overbought or oversold reading. The last signal was a sell 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 57.61. 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 41 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 61. This is not a topping or bottoming area. The last signal was a sell 2 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 buy 5 period(s) ago.

Rex Takasugi – TD Profile

XETRA DAX PF closed down -2.870 at 13,429.430. Volume was 50% below average (consolidating) and Bollinger Bands were 41% narrower than normal.

Open     High      Low     Close     Volume___
13,463.46013,492.74013,382.98013,429.430 39,611,772
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 13,364.13 13,234.47 12,442.51
Volatility: 13 13 16
Volume: 73,736,176 75,681,664 85,482,408

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 7.9% above its 200-period moving average and is in an upward trend. Volatility is relatively normal 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 6 periods.

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