DAX PERFORMANCE-INDEX (.GDAXI) struggling to maintain gains
The DAX found support at 10,400 yesterday, as it did a day earlier, but the morning bounce may be running out of steam already.
A short-term bounce requires a push through trendline resistance from Tuesday’s highs, through 10,700, opening the way to 10,880 and 11,000. Below 10,400, 10,200 and then 9967 are near-term targets to the downside.
Overall, the bias in prices is: Downwards.
Note: this chart shows extraordinary price action to the downside.
By the way, prices are vulnerable to a correction towards 12,365.63.
The projected upper bound is: 11,021.55.
The projected lower bound is: 9,743.39.
The projected closing price is: 10,382.47.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 1 white candles and 9 black candles for a net of 8 black candles. During the past 50 bars, there have been 25 white candles and 25 black candles.
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 3.1620. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a buy 5 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 15.02. This is where it usually bottoms. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 80 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 -144.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 5 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 12 period(s) ago.
Rex Takasugi – TD Profile
XETRA DAX PF closed down -36.811 at 10,438.680. Volume was 124% above average (neutral) and Bollinger Bands were 408% wider than normal.
Open High Low Close Volume___
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 11,525.45 13,035.19 12,610.46
Volatility: 51 34 22
Volume: 214,941,936 113,048,992 91,732,320
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 17.2% below 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 very strong flows of volume out of .GDAXI (bearish). Our trend forecasting oscillators are currently bearish on .GDAXI and have had this outlook for the last 11 periods. Our momentum oscillator is currently indicating that .GDAXI is currently in an oversold condition.