DAX PERFORMANCE-INDEX (.GDAXI) uncertainty about a potential U.S.-China trade deal weighs on sentiment
German stocks are notably lower Wednesday morning, as uncertainty about a potential U.S.-China trade deal weighed on sentiment and forced investors to indulge in some selling.
The U.S. President Donald Trump on Tuesday threatened higher tariffs on Chinese goods if a trade deal is not reached between the two countries.
The ongoing protests in Hong Kong weighed as well on sentiment.
Germany’s benchmark DAX is down 143.60 points, or 1.1%, at 13,077.52.
Deutsche Bank shares are down more than 2%. Continental, Infineon, Fresenius, Bayer, Covestro, Lufthansa, BASF, BMW, Volkswagen and HeidelbergCement are declining 1 to 1.7%.
Midcap stocks Commerzbank, Thyssenkrupp, Leoni AG, Siltronic and Fuchs Perolub tumbled 2 to 7%.
On the economic front, Germany producer prices declined for the second straight month in October largely driven by energy prices, data from Destatis showed.
Producer prices fell by 0.6% year-on-year in October, bigger than the 0.1% drop in September. This was the second straight decrease. Economists had forecast an annual 0.4% fall.
On a monthly basis, producer prices dropped 0.2%, in contrast to a 0.1% increase in September. Prices were forecast to rise 0.1 percent.
Excluding energy, producer prices gained 0.3% on month but declined 0.2% from the same period last year. Energy prices decreased 3.1% annually.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
The projected upper bound is: 13,472.75.
The projected lower bound is: 12,879.11.
The projected closing price is: 13,175.93.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 31 white candles and 19 black candles for a net of 12 white candles.
A falling window occurred (where the bottom of the previous shadow is above the top of the current shadow). This usually implies a continuation of a bearish trend. There have been 3 falling windows in the last 50 candles–this makes the current falling window even more bearish. The two candles preceding the falling window were black, which makes this pattern even more 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 33.7011. This is not an overbought or oversold reading. The last signal was a sell 7 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 61.10. 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 5 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 -51. This is not a topping or bottoming area. The last signal was a sell 7 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 4 period(s) ago.
Rex Takasugi – TD Profile
XETRA DAX PF closed down -62.980 at 13,158.140. Volume was 20% below average (neutral) and Bollinger Bands were 32% narrower than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 13,223.82 12,675.83 12,114.39
Volatility: 9 15 17
Volume: 81,502,928 83,787,736 87,893,528
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 gapped down today (bearish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
XETRA DAX PF is currently 8.6% 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 25 periods. our momentum oscillator has set a new 14-period low while the security price has not. This is a bearish divergence.
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