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July 01, 2023
- Medium-term trend indication has turned positive as the MACD index generated a crossover buy signal
- The lower Bollinger Band® is currently at 15,500 while the higher band is at 16,300
The DAX continues a 5 day surge, reaping a total of 2.05%. Yesterday's session pointed in the same direction — the DAX rose 201.18 points to close at 16,148 yesterday which makes for a move of 1.26%.
The DAX is now trading 103,300% above the significant low (15.42) it slumped to 9 months ago.
Trend-following investors would be interested to note that the MACD index is indicating that momentum is shifting from bearish to bullish following a positive crossover. When the MACD rises above the signal line, it is typically considered to be a bullish development favoring long positions. Analysis based on the asset volatility indicates that Bollinger Band® analysis indicates that current price action is approaching the upper band at 16,300, thereby suggesting that the DAX is becoming overvalued.
Overall, while the DAX has been on an uptrend, technical indicators suggest that it has no obvious direction for the immediate future.
Fundamental indicators – Euro Zone Consumer Price Index came out at 5.5%, while a consensus of analysts was expecting 5.6%.
Other markets are also showing gains as CAC climbs 1.19% yesterday and closed at 7,312.73. FTSE went up by 0.8% yesterday, and closed at 7,531.53. S&P 500 rises 1.23% yesterday and closed at 4,396.44.
