Friday, December 9, 2011

Dax sentiment week 49

Bearish biased friday, bullish biased monday

Dax remains in a bear market very accurately in a technical perspective. During the last couple of weeks Dax hasn't been able to break the declining trend line. Yesterday possible support Fibonacci level 5942 broke down very aggressively. Initially, 20 day moving average stopped the decline. For the coming week, 5942 could offer resistance, but the bias is on the downside. 5568 seems to be the target.

20 day highs vs. lows made a negative tick. This is a bearish signal for friday.

On a weekly basis, the intermediate term view is bullish if Dax manages to remain above 5800. McClellan indicator is still rising. Although, decrease at these levels would definitely accumulate bearish view.

Dax overbought and sold indicator hasn't finnished the down leg yet, because of the stock market being manipulated by government and central bankers. There is still room for the downside.

Dax volume index ticked below the March lows. This would confirm at least the short term target 5568.

For the conclusion, there is a little bullish bias for the next monday according to my money flow studies. So, be careful for the next couple of days.