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May 20, 2023- The MACD line is significantly above the MACD signal line
- Upper Bollinger Band® currently at 16,237
The sentiment that generated 1,204 points in cumulative gains over the past 13 days was further evident for the DAX. The DAX stayed on track yesterday: the DAX rose 112 points to close at 16,275 yesterday which makes for a move of 0.69%.
The index has been trending positively for about 2 months. The DAX hit a significant low of 15.42 around 8 months ago, but has since recovered 104,721%.
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 16,237, 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 – Euro Zone CFTC EUR speculative net positions released yesterday at 20:30 UTC with a figure of 187,100, while the previous figure was 179,400.
Other markets are also showing gains as ASX 200 ascends 0.59% yesterday and closed at 7,236.8. KOSPI Composite Index ascends 0.89% yesterday and closed at 2,515.4.
At the same time, after ending yesterday's session at 19,727, Hang Seng lost 276.68 points and is trading around 19,451.
