- The MACD is significantly below its signal line, which suggests the market is running out of bearish momentum and could revert to a positive outlook as bulls regain control.
- Falling prices have precipitated the DAX's approach to its lower Bollinger Band® at 13,900
The DAX has been losing ground for 5 days, shedding a total of 4.1% of its value. Similar trend today: the DAX is down to 13,900, after ending yesterday at 13,943. Overall, a 0.28% loss or 42.87 points today.
The DAX has recovered 90,321% since descending to a significant low of 15.42 around 3 months ago.
The MACD is significantly below its signal line which suggests that the existing bearish sentiment is beginning to swing around toward a more bullish outlook. 'Bullish Harami' is a candlestick chart indicator used for detecting reversals in an existing bear trend. It is generally indicated by a small price increase that's contained within a broader downward price movement and is commonly associated with a bearish trend coming to an end. Bollinger Bands® shows an indication of recovery: the lower band is at 13,900, a low enough level to, generally, suggest that the DAX is trading below its fair value.
Overall, looking at the technical analysis landscape, it seems the DAX —which is currently on a downtrend— might reverse course and start pointing upward in the short term.
Fundamental indicators – highly important Business Climate Index data from Germany beat analyst expectations of 87.4 with a reading of 88.6.
In the meantime, negative performances are also seen in other markets, Nikkei falls 2.46% to trade around 26,568. ASX 200 falls 1.54% to trade around 7,024.3. Hang Seng is down 252.81 points from the beginning of the session and now trades around 19,100.
Upcoming fundamentals: Germany GfK Consumer Climate (Jan) will be released tomorrow at 07:00 UTC.