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Also note the bearish (negative) divergence as per the 7-day RSI (lower panel)
What is the 7-day trend regime? Overbought
What is the 14-day trend regime? Bullish
What is the short-term price action reading? Do Not Enter Long Here Risk Reward Unattractive
What is the medium-term price action reading? Aggressive Buying But Overbought On Lower Time Frame-Expect Consolidation or Minor Retracement
What is the long-term price action reading? Very Strong Move Buyers In Control But Don't Chase-May Fail At Attempt To Hold The Highs-If It Doesn't Hold Then The 8-EMA May Be A Short/Sell Target
Summary
The DAX Index is currently in a bullish trend, but it is overbought in the short term.
There is a risk of a retracement or consolidation in the near future.
While the long-term trend is strong, it's advisable not to chase the current high.
A failure to hold the current high could signal a potential short-selling opportunity.
Previous Post: Germany's DAX Index Above 20,000 For The First Time Ever
Tuesday 03 December 2024
To trade global instruments, you will need an offshore account. To get started, contact the Unum Capital Trading Desk: E-mail: tradingdesk@unum.co.za | Call: 011 384 2923
Germany's DAX Index Above 20,000 For The First Time, Ever
Sharp bullish reversal from the oversold conditions seen in August.
Clients of Unum Capital were alerted to the potential for a bullish reversal, supported by the automated data reading at the time.
Originally Published Here: https://www.unum.capital/post/dax-index-ultra-short-term-in-an-oversold-range-tuesday-06-august-2024
Long time followers of my research will also recall the DAX being highlighted at 13,000, four years in September 2020. The time-stamped chart is shown below:
Previous Post: DAX Index. Ultra Short Term, Trading In An Oversold Range - Tuesday, 06 August 2024
• REAL-TIME: 12h10
ABOUT THE TACTICAL TRADING GUIDE:
Technology + Proprietary Insights has helped to develop automated tools and strategies that are used to identify potential trading opportunities as well as highlight potentially significant technical developments across various time frames. This page highlights readings from our Tactical Trading Guide (Price Action Tool) which is also available as a live tool via the telegram group. The tool provides automated price analysis for any tradeable instrument across 3 time frames: short (short term), medium (medium term) and long (long term). Readings are subject to change, based on the development of the subsequent price action.
The tool helps to determine and shed light on the some of the following:
Whether the reward-to-risk is attractive for a buy/long position?
Whether a share is weak or if aggressive buying is underway
Whether a trader can look to buy a pullback into a key moving average (continuation trade)
Whether a share needs to break a range for a new trend to be determined (bullish or bearish)
Whether a traders needs to monitor for a change of character that could lead to a bullish or bearish reversal
Whether a share could start a consolidation phase
Whether the upward momentum is slowing (if it's in a bullish phase)
Whether buyers can look to 'phase in' to a position (if it's in a bearish phase)
Whether a share lacks directional bias
Lester Davids
Analyst: Unum Capital
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