German DAX, week of July 21st; Commerzbank, ThyssenKrupp, Deutsche Post, Volkswagen, BMW, Lanxess

Another interesting week full of surprises. The Fed's report to the US Senate did not "hurt the business"  and the index continued to increase in his positive trend channel. The majority of DAX companies increased the prices during last week.

The Commerzbank price increased since July 4th and could achieved during the last week 9.23%. Will it continue?  The paper declined from  January  to June and the question is do we have a general change and it will go up again? Can the rumors about the German Government will sell their stocks initiate a turn a round?  The majority of indicators changed and signal a positive development. The upper line of the negative trend channel is around 7 Euro's but  the strength of the trend, ADX, is declining. It will not be easy.

ThyssenKrupp is an interesting story. Rumors of a potential sell of a steel factory in Brazil pushed some activities back into a stock which did have some trouble during June. All indicators are heading north but I think it is time for a pull back next week. It does not change the general direction is to the north.The central question is is the stock this time able to break through a resistance of 18.5 Euro's? 3 times during the last 12 months he tried and was not successful.

Where should we put our attention next week? Looking for the companies with the strongest trend, ADX over 30, we get:

• Deutsche Post
• Deutsche Boerse
• Infineon
• Volkswagen

 Deutsche Post is an example what a commend in a Newspaper can do. A week ago I could read it is worth to buy this stock and for 4 days we can see an increase in volume. The stock reached the upper line of the trend channel last Friday. All indicators showing a positive development but will the momentum be good enough to run for a few more days on the upper line or are we going to see a pull back next week?

I am focused again  on Volkswagen. The stock was able to cross the resistance line and continue to go to the north. All indicators are looking good and the RSI does not indicate the stock is overpriced, yet. The Stochastic shows the stock is overbought and ready for a pull back. The first buy signal was generated by 157.15 Euro's July 1st, an increase of 9.12% so far.  Not really a paper for a new investment but so far no sell signal.

What is about BMW I mentioned last week? There is a resistance line at 72.65 Euro's which was tested this year 2 times. But the strength of the trend is getting stronger and I am sure it will go to the north.

I mentioned also Lanxess last week. The stock went to the side and the strength of the trend is getting  weak and the stochastic already shows the title is overbought. Not a good combination.

But as always: just my 5 cents