DAX PERFORMANCE-INDEX (.GDAXI) sell-off pauses, yet bearish picture remains

DAX PERFORMANCE-INDEX (.GDAXI) sell-off pauses, yet bearish picture remains

DAX PERFORMANCE-INDEX (.GDAXI) sell-off pauses, yet bearish picture remains

The DAX has similarly been consolidating overnight, coming off the back of a big decline yesterday.

This looks to be a setup that is consistent with yesterday’s price action, with a breakdown below 12,611 providing us with another sell signal for the DAX. Only a break through 13,162 would bring about a bullish outlook for this index.

Technical Indicators

Overall, the bias in prices is: Downwards.

Note: this chart shows extraordinary price action to the downside.

The projected upper bound is: 13,191.17.

The projected lower bound is: 12,343.71.

The projected closing price is: 12,767.44.

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 27 white candles and 23 black candles for a net of 4 white 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 14.5715. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 4 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 31.12. 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 70 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 -209.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 6 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 2 period(s) ago.

Rex Takasugi – TD Profile

XETRA DAX PF closed down -15.610 at 12,774.880. Volume was 99% above average (neutral) and Bollinger Bands were 98% wider than normal.

Open     High      Low     Close     Volume___
12,682.16012,849.17012,368.05012,774.880 163,618,880
Technical Outlook 
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 13,458.77 13,386.89 12,639.33
Volatility: 25 20 18
Volume: 104,160,432 86,015,424 85,850,728

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 1.1% 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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