DAX PERFORMANCE-INDEX (.GDAXI) Technical Levels to Watch
DAX positive momentum keeps pushing the index to fresh yearly highs with small daily corrections making lower lows and higher highs as the Dax benchmark trades above all major daily moving averages and inside the ascending channel which started back in December 2018. Dax has reached overbought levels as the RSI 14 suggests at 74.72 a level that we haven’t seen since early May 2019.
On the upside, the immediate resistance stands at 13,158 today’s high, a convincing break above might drive the index up to 13,368 the high from January 29th, 2019. Bullish momentum for Dax benchmark will be intact as long as the index trades inside the ascending channel which started back in December 2018.
On the flip side, immediate support for DAX index stands at 13,120 today’s low, while sellers below that level will target the low from October 23rd at 12,700. Next support level for DAX index stands at the 50-day moving average at 12,376.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
By the way, prices are vulnerable to a correction towards 12,596.22.
The projected upper bound is: 13,475.07.
The projected lower bound is: 12,881.55.
The projected closing price is: 13,178.31.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 34 white candles and 16 black candles for a net of 18 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 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 90.6673. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 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 74.59. This is where it usually tops. 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 4 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 170.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 4 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 16 period(s) ago.
Rex Takasugi – TD Profile
XETRA DAX PF closed up 12.220 at 13,148.500. Volume was 2% below average (neutral) and Bollinger Bands were 26% wider 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: 12,946.90 12,405.72 12,003.89
Volatility: 9 15 17
Volume: 80,124,712 82,318,824 88,435,192
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 9.5% 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 14 periods. Our momentum oscillator is currently indicating that .GDAXI is currently in an overbought condition.