Germany’s DAX index is the equivalent to America’s Dow Jones industrial index. Both indices are composed of 30 blue-chip issues. As of Friday, the DAX has scored a six-week winning streak ending the week above 9,000 for the first time in its 25-year history.

Upside in the immediate future for the DAX looks limited. It’s quite possible that the intra-day high on 11/7/13 at 9,197.50 was the top of the advance from the October low. The daily Coppock Curve oscillator is negatively diverging and the distance between the index and its 200-dma is very close to the level at which highs are usually seen in the index.

Longer term, however, the picture looks brighter. The chart below shows the relative performance between the DAX and the broad EuroStoxx50 index. It shows us that the DAX may have broken its three month period of underperformance. A similar picture emerges when comparing the DAX to the MSCI World index. I look for a buying opportunity after a correction in the immediate future.

Request your free copy of the November Gold Report at SeattleTA.

Ed Carlson, author of George Lindsay and the Art of Technical Analysis, and his new book, George Lindsay's An Aid to Timing is an independent trader, consultant, and Chartered Market Technician (CMT) based in Seattle. Carlson manages the website Seattle Technical Advisors.com, where he publishes daily and weekly commentary. He spent twenty years as a stockbroker and holds an M.B.A. from Wichita State University.

© 2013 Copyright Ed Carlson - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Only logged in users are allowed to post comments. Register/ Log in

The Market Oracle is a FREE Financial Markets Forecasting & Analysis web-site.
(c) 2005-2024 MarketOracle.co.uk (Market Oracle Ltd) - Market Oracle Ltd asserts copyright on all articles authored by our editorial team and all comments posted. Any and all information provided within the web-site, is for general information purposes only and Market Oracle Ltd do not warrant the accuracy, timeliness or suitability of any information provided on this site. nor is or shall be deemed to constitute, financial or any other advice or recommendation by us. and are also not meant to be investment advice or solicitation or recommendation to establish market positions. We do not give investment advice and our comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to enter into a market position either stock, option, futures contract, bonds, commodity or any other financial instrument at any time. We recommend that independent professional advice is obtained before you make any investment or trading decisions. By using this site you agree to this sites Terms of Use. From time to time we promote or endorse certain products / services that we believe are worthy of your time and attention. In return for that endorsement and only in the cases where you purchase directly though us may we be compensated by the producers of those products.