Thursday, December 22, 2011

Dax sentiment week 51

Symmetrical triangle

Dax has been forming a symmetrical triangle. Now, we are waiting for a break out. This could be a little bit bearish, but I am not counting too much into that. Dax finally managed to get above 5767-5771 and yesterday it offered plausible support. So, if Dax cannot manage to break the declining trend line at 5890-5900 (or the upper at 6090) and begins to build a descending triangle, this would be bearish sign. This would be verified if Dax will re-test 5767-5771.

20 day highs vs. lows seems to be in a neutral zone. Thus, no trend here.

Currently 20 day stock performance is a slightly bearish, but when this indicator rises the odds for the bulls are also rising.

Again, overbought / oversold condition have no clue about the direction. No clear trend here either.

Dax cycles is also stucked at the neutral zero zone. However, it has made a lower low recently, which could indicate lower levels to the Dax. Apparently this could take 1-3 months.

 Same here with volume index which made lower lows. If the underlying situation is leading Dax and the politicians won't manage to manipulate the stock market, now it seems to be wise to trade in a triangle / range and wait the big move after the break out has occured.

According to Cognitrend sentiment studies, the optimism among Dax investors is at the highest level. Should I be concerned?