DAX PERFORMANCE-INDEX (.GDAXI) Set To Underperform
European stock markets are expected to open marginally lower Tuesday, as investors take a cautious view ahead of the start of the earnings season.
Futures for the U.K.’s FTSE 100 index were trading 2 points, or 0.1%, lower by 02:20 ET (07:20 GMT), futures for France’s CAC 40 were 1 point, or 0.1%, lower, while the Dax futures contract underperformed, trading down 24 points, or 0.2%.
European earnings results will begin in earnest next week, but there are a number of U.S. reports due this week, starting today with banking giants JPMorgan Chase (NYSE:JPM), Citigroup (NYSE:C) and Wells Fargo (NYSE:WFC). The banks are often taken as a rough proxy for the health of the broader economy, and are thus likely to set the tone of the overall earnings season.
Sentiment received another boost overnight as the U.S. revoked its decision, taken last summer amid tensions between the two economic superpowers, to call China a currency manipulator – just days before the two countries are set to sign phase one of a trade deal.
The news helped raised optimism ahead of the U.S. and China signing the first phase of their trade deal on Wednesday. This phase one deal would prevent any further tit-for-tat tariffs and roll back some existing U.S. tariffs in Chinese goods.
Elsewhere, crude oil was largely unchanged as investors kept a wary eye on tensions in the Middle East as well as the potential trade deal between China and the U.S. However, gold futures lost ground as investors left the safe haven amid positive signs on the trade deal.
U.S. Crude Oil WTI Futures traded flat at $58.00 by 2:15 AM ET (07:15 GMT). International Brent Oil Futures also rose 0.1% to $64.25. Gold futures for February delivery on New York’s COMEX fell 0.6% to $1,542.05.
Overall, the bias in prices is: Upwards.
The projected upper bound is: 13,730.70.
The projected lower bound is: 13,202.96.
The projected closing price is: 13,466.83.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 24 white candles and 26 black candles for a net of 2 black 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 82.9313. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 15 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 59.21. 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 39 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 81. This is not a topping or bottoming area. The last signal was a sell 0 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 buy 3 period(s) ago.
Rex Takasugi – TD Profile
XETRA DAX PF closed up 4.971 at 13,456.490. Volume was 7% below average (neutral) and Bollinger Bands were 39% 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: 13,341.45 13,212.78 12,422.44
Volatility: 15 13 16
Volume: 73,247,232 77,469,664 85,911,288
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 8.3% 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 4 periods.