Germany: DAX PERFORMANCE-INDEX (.GDAXI) pullback likely to be short-term in nature

Germany: DAX PERFORMANCE-INDEX (.GDAXI) pullback likely to be short-term in nature

Germany: DAX PERFORMANCE-INDEX (.GDAXI) pullback likely to be short-term in nature

The DAX has been pulling back throughout the start of the week, with the price respecting trendline and the 200-day simple moving average (SMA) support this morning.

The recent rebound comes from a long-term uptrend, raising the chance that we will see the beginning of a wider recovery from here. Thus, there is a strong chance we will see another leg higher before long. With that in mind, watch for a bullish turnaround in the near future, with a break below 11,208 required to negate this bullish outlook.

Overall, the bias in prices is: Downwards.

The projected upper bound is: 11,653.43.

The projected lower bound is: 10,976.59.

The projected closing price is: 11,315.01.

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 19 white candles and 31 black candles for a net of 12 black 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 5 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.

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 47.4000. This is not an overbought or oversold reading. The last signal was a buy 9 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 47.71. 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 26 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 64. 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 buy 5 period(s) ago.

Rex Takasugi – TD Profile

XETRA DAX PF closed down -130.140 at 11,335.320. Volume was 11% below average (neutral) and Bollinger Bands were 31% narrower than normal.

Open High Low Close Volume___
11,429.82011,442.19011,330.44011,335.320 86,399,656

Technical Outlook
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 11,289.43 11,573.10 12,260.04
Volatility: 19 19 18
Volume: 87,059,520 98,555,456 101,443,192

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.

Summary

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 7.5% below its 200-period moving average and is in an upward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume out of .GDAXI (mildly bearish). Our trend forecasting oscillators are currently bullish on .GDAXI and have had this outlook for the last 6 periods.

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