- The MACD line is significantly above the MACD signal line
- The lower Bollinger band is currently at 11,900 while the higher band is at 12,817
The DAX continues a 4 day uptrend, gaining a total of 5.26%. Today's session so far looks to be heading in the same direction — after closing the previous trading day at 12,649, the DAX is up to 12,800, which makes for a move of 1.29%/150.97 points today.
Having set a significant high of 16,272 a month ago, the DAX is trading 81,930% lower.
The MACD is significantly above its signal line, which suggests the market is running out of bullish momentum and could revert to a negative outlook as bears regain control. Bollinger band analysis indicates that current price action is approaching the upper band at 12,817, thereby suggesting that the DAX is becoming overvalued.
Technical analysis of the DAX price action suggests it is likely to undergo a short-term reversal amid broader bullish sentiment.
Fundamental indicators – Germany ZEW Economic Sentiment Index released today at 09:00 UTC with a figure of -59.2, while the previous figure was -61.9.
The DAX shows positive signs, other assets are also on par: having closed the previous session at 3,583, S&P 500 is up 2.65% today to currently trade at around 3,678. ASX 200 gained 1.72% and is now trading at 6,779.2. Nasdaq rallies 3.43% to trade around 10,676.
Upcoming fundamentals: Euro Zone Consumer Price Index figure is projected at 10%. It previously stood at 9.1%; data will be released tomorrow at 09:00 UTC.