Monday, October 31, 2011

Dax weekly sentiment 44

Dax has found some resistance

From technical perspective it seems that after completing the upside targets, Dax has found resistance around level 6400. In a future Dax could be consolidating/ranging between 6000-6400.

Overbought/sold indicator has reached extreme level after selling has dropped dramatically. It doesn't need any extra efforts to forecast this to reverse in a future.

Dax cycles indicates that we don't have much room for the upside, so we will see a consolidation or a pullback.

20 day high vs. low ratio is also in a extreme overbought condition. Usually this high level has marked at least a short term top.

90% of Dax stocks are 1 standard deviation above their 50 day and 20 day moving averages. Again we are in a very overbought condition that won't last long.

Dax volume index led the price index up and now it has confirmed the current level. No divergence at the moment.