DAX PERFORMANCE-INDEX (.GDAXI) shares almost unchanged at start of trading

DAX PERFORMANCE-INDEX (.GDAXI) shares almost unchanged at start of trading

DAX PERFORMANCE-INDEX (.GDAXI) shares almost unchanged at start of trading

German stocks were almost unchanged at the start of trading on Wednesday, with the benchmark DAX index opening at 12,355.92 points, down 33.7 points, or minus 0.27 percent.

The decision to cut interest rates by the U.S. Federal Reserve (Fed), which had lowered the federal funds rate for the second time this year, had little immediate effect on the German DAX.

In view of growing economic concerns, the Fed cut the key rates by a quarter percentage point to the new range of 1.75 to 2.0 percent.

The biggest winner among Germany’s largest 30 companies at the start of trading was the producer of high-tech polymer materials Covestro, up 0.43 percent, followed by industrial gas producer Linde with 0.19 percent and Germany’s largest postal company Deutsche Post with 0.15 percent.

The euro grew slightly by 0.09 percent on Thursday, starting trading at 1.1043 U.S. dollars on Thursday.

Following media reports about Deutsche Bank outsourcing billions of problematic assets to its bad bank, shares of Germany’s largest baking house went up by more than 1.5 percent and moved to the top of DAX shortly after trading started.

After being the biggest winner in Germany’s DAX index after close of trading on Wednesday, shares of digital payment service provider Wircard fell by 1.32 percent, making it the biggest loser at the start of trading on Thursday.

The German internet company Rocket Internet announced its financial results for the first half of 2019 on Thursday. The company, which is building up internet start-up companies, reported 32 million euros (about 35.3 million dollars) of consolidated revenue and a consolidated profit of 548 million euros.

Technical Indicators

Overall, the bias in prices is: Upwards.

The projected upper bound is: 12,818.74.

The projected lower bound is: 12,101.68.

The projected closing price is: 12,460.21.

Candlesticks

A big white candle occurred. This is generally considered bullish, as prices closed significantly higher than they opened. If the candle appears when prices are “low,” it may be the first sign of a bottom. If it occurs when prices are rebounding off of a support area (e.g., a moving average, trendline, or retracement level), the long white candle adds credibility to the support. Similarly, if the candle appears during a breakout above a resistance area, the long white candle adds credibility to the breakout.
During the past 10 bars, there have been 9 white candles and 1 black candles for a net of 8 white candles. During the past 50 bars, there have been 32 white candles and 18 black candles for a net of 14 white candles.

Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.

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 54.0703. This is not an overbought or oversold reading. The last signal was a sell 3 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 67.04. 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 buy 31 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 80. This is not a topping or bottoming area. The last signal was a sell 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 buy 21 period(s) ago.

Rex Takasugi – TD Profile

XETRA DAX PF closed up 68.080 at 12,457.700. Volume was 8% below average (neutral) and Bollinger Bands were 52% wider than normal.

Open     High      Low     Close     Volume___
12,355.92012,466.78012,354.83012,457.700 81,542,008
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 12,352.46 12,043.70 11,732.39
Volatility: 7 19 19
Volume: 86,571,040 86,614,928 90,421,728

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 6.2% above its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. Our volume indicators reflect moderate flows of volume into .GDAXI (mildly bullish). Our trend forecasting oscillators are currently bullish on .GDAXI and have had this outlook for the last 13 periods.

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