Sunday, June 30, 2013

German DAX; what to expect next week; review of Lanxess

That was an interesting week. On Monday the DAX went even further down and felt out of his trend channel. But as expected the index recovered during the week like he did in April and in November of last year.

The question is only how fast the DAX will climb again to the upper line of the trend channel? Will the recover continue this week? Most likely it will but I not sure about the speed. The majority of indicators are still bearish and it might take a few more days until we have another stable increase of the DAX. Right now every small bad news can stop  the recover. The " shaky hands" are still in business and if we get some bad news about the US economy all index might  dive again. 

A few weeks ago I was writing about Lanxess. On June 8th I said it is time to sell. Almost a months later it looks like I was right. The paper lost as of last Friday 17%. All the indicators still show a bad picture for the stock. But they also indicate the stock price is low, very low and a recover is due.  But MACD, DI, PVI or RSI do not indicate a fast recover. It might take some time.

But as always: just my 5 cents


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