Wednesday, June 28, 2017

DAX Germany Daily Chart; Neggie D Spankdown; Testing 50-Day MA

The DAX is printing at 12608 right now (red dot) falling below the 50-day MA support at 12611 that now becomes resistance. The upper standard deviation band was violated mid-month so the middle band is on the table and even the lower band. Price comes down to tag the middle band, dances there, and then fails and is very close to the lower band now at 12590.

The red lines show the ominous rising wedge pattern for price while all the indicators were negatively diverging. In addition, the indicators were coming off overbot levels. All these bearish indications forecast and create the spankdown that occurs. The indicators are weak and bleak so lower lows would be expected after any bounce would occur in this daily time frame.

Price likely wants to touch the lower band since it is in the neighborhood. That would place the middle band at 12730-ish on the table. The DAX likely wants to play around at the 12520-12600 range for a few days and then recover higher.

The DAX weekly chart is negatively diverged across all chart indicators so when price recovers in the daily time frame it will likely be a good opportunity to go short since the weekly charts wants to see weakness for a couple weeks or month. The monthly chart is topping out like other major global stock indexes so a multi-year top is on the table for the DAX this year.

The DAX is currently deciding to either bounce, or die, from the 50-day MA. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.

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