DAX PERFORMANCE-INDEX (.GDAXI) turning lower from range resistance

DAX PERFORMANCE-INDEX (.GDAXI) turning lower from range resistance

DAX PERFORMANCE-INDEX (.GDAXI) turning lower from range resistance

The DAX appears to be at a turning point following a recent rally that has taken us back into the key resistance level of 13,310.

That level represents the highest point within the consolidation phase evident from 7 November to 19 November. Thus, with the price having reached that same level, it is interesting to see initial signs of a bearish reversal coming into play. The decline back into the 13,218 level is key here, negating the recent creation of higher lows. With that in mind, this market looks primed for a bearish turn. This bearish outlook remains in play unless we see a break through the 13,310 resistance level.

Technical Indicators

Overall, the bias in prices is: Upwards.

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

The projected upper bound is: 13,556.83.

The projected lower bound is: 12,968.57.

The projected closing price is: 13,262.70.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 28 white candles and 22 black candles for a net of 6 white candles.

A long lower shadow occurred. This is typically a bullish signal (particularly when it occurs near a low price level, at a support level, or when the security is oversold).

A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.

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 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 81.2075. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 13 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 62.75. 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 11 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 50. This is not a topping or bottoming area. The last signal was a sell 0 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 10 period(s) ago.

Rex Takasugi – TD Profile

XETRA DAX PF closed down -41.490 at 13,245.580. Volume was 56% below average (consolidating) and Bollinger Bands were 67% narrower than normal.

Open     High      Low     Close     Volume___
13,247.61013,259.29013,215.71013,245.580 36,771,004
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 13,214.51 12,774.57 12,179.34
Volatility: 7 15 16
Volume: 68,602,216 81,311,656 87,264,648

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 8.8% above its 200-period moving average and is in an upward trend. Volatility is relatively normal 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 31 periods.

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