It is weekend and I have time to look into the German DAX and what might come up next week.
Scrolling through the different companies Daimler got my attention. It is a big German company but the charts were not necessary good the since February. Of course for the decline was responsible the little European country Greek. Ya right......In my opinion the market just corrected the fantastic increase during December 2011 and January 2012. In June the chart was back to a normal value and started again to climb up. But how good is the change of the trend?
Looking at the indicators we get a quite promising picture. The PVI crossed the signal line early July after being for 5 months under the signal line. RSI Wilder is still under the 70% line. The stock is certainly not overpriced. The DI+ crossed the DI- early July to the north and even the ADX Wilder is now at 30. On top the stock is crossing now the 200 days line. I think money is going into the title and the trend is healthy. We might not see pictures like in US this week with an increase of 20%, 30% and more.
What else can we see in Germany? Let's look at Daimler's competition: Volkswagen. OK I hear the screaming noises. I know Marketing people will tell me they serve different customer groups. Fine.
The indicators do not look good. The SAR generated yesterday a sell signal. The PVI is heading to the signal line, the MACD crossed on Tuesday the signal line to the south. DI- is on the move to cross the DM+. I do not know if we speak about a short correction just to get hands on the profit of the last weeks or do we have a major correction to expect and we will see 120 Euros. Who knows.
As always: just my 5 cents.....
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