That was an interesting week, wasn't it? The DAX was able to defend is trend. Another 1% increase instead of a short correction as we expected. The short statement of Ms. Yellen on Wednesday and the hearing at Senate on Thursday was good enough to convince investors to go ahead. But the general challenge of the DAX will not change. According to the indicators a correction is due. For a month DAX is running at a RSI level of 70.
A few weeks ago we said the stock Dt.Post will take a small correction and we would be sure the stock will continue to increase. It looks like last week on Tuesday the title finished the correction, a small one and the stock increase again. 3.64% during the week, second in class after Lufthansa. The MACD is ready to cross the signal line but it is not confirmed yet. The strength indicator is currently still declining. Nevertheless it is looking good.
We spoke last week about K+S. We expected an further increase after a successful week. That was certainly not right. -0.94% is not good and it might be the chart will continue and decline. The SAR is still in a buying mode but we do not expect a big increase next week.
Another company was Infineon. We expected an increase but on Tuesday someone decided to sell big number of shares. Overall for the week the chart achieved -0.35% due to the big sell off. The rest of the week was not able to compensate. Since early September the shares are in a negative trend and currently at the top line. We thought the line will be crossed last week. It did not happened and we might see another trip to the lower line of the channel.
Dt. Bank was on the list last week as well. The chart developed this year a triangle and reach last week the lower line after another decline by -2.52%. We thought reaching the line might indicate a trend change but it did not happen. There is a strong possibility this week the stock will cross the line and continue to go to the South. No indicator indicates a change for next week.
We spoke about Siemens last week. The stock increased by 1.15%. The stock is still in a buying phase and all indicators of our trade system are in green.
What is new? Lufthansa, BASF and Bayer developed a SAR buy signal last week. But only Lufthansa is still not overbought and according to other indicators worth an investment. Lufthansa crossed also on Friday the 200 days line which is normally an indicator for conservative investors to buy.
But as always: just my 5 cents......
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