- Price action falls into negative territory as Bearish Engulfing pattern forms on the DAX chart
- The DAX's upper Bollinger Band® is at 15,783 which indicates a further downward move may follow.
While the DAX is on a 4 day uptrend Bucking the trend and turning lower, the DAX is down to 15,546, after ending yesterday at 15,600. Overall, a 0.37% loss or 54.12 points today.
6 months ago, the DAX fell to a low of 15.42 but has since recovered 101,100%.
A "bearish engulfing" pattern — a scenario when a larger red candle engulfs a smaller green candle, at the top of a prevailing uptrend. Typically this is a signal of lower prices in the near term. The DAX's upper Bollinger Band® is at 15,783 which indicates a further downward move may follow.
Following today's unexpected losses, extensive multifactorial technical analysis forecasts the DAX to buck against its prevailing uptrend and begin to dip lower in the short term. With all probabilities considered, the the DAX is expected to attract significant bearish sentiment in the coming days.
Fundamental indicators – Euro Zone Composite PMI released today at 08:00 UTC with a figure of 53.7, while the previous figure was 52.
In the meantime, negative performances are also seen in other markets, Nikkei closed at 27,800 (down 1.68%). Dow Jones is down to 33,400, losing 200 points, after closing at 33,600 in the preceding trading session.
Other assets are showing positive performances as FTSE ascends 0.37% to trade around 7,662.72.
Upcoming fundamentals: tomorrow at 06:00 UTC data for Germany Industrial Production will be released, with an expected decline to 0.1% from the preceding figure of 3.5%.