The Long-Term Uptrend in Stocks is Officially Back as Dax Overtakes the 100 Weekly SMA

The downtrend in stocks was over in December, but the uptrend wasn't official until this week

Stock markets are totally bullish now

Last year was pretty bad for stock markets as they turned bearish amid a slowing global economy. The reversal started at the beginning of the year after Donald Trump started the trade war with China, which hurt the sentiment in financial markets. DAX lost more than 3,000 points from top to bottom, which means nearly a quarter of its value.

But, the decline stopped right above the 200 SMA on the weekly chart. The price formed a hammer down there which is a bullish reversing signal after the decline. The reversal began back then for stocks and since then, the trend has been bullish. Although, there was the doubt that this might just be a retrace before the bearish trend resumed again.

That is out of the question now as the pressure has been on the upside for months. Dax is still to take out last year’s high, but the price has finally moved above the 100 SMA (green) on the weekly chart. This moving average provided support on the way down last year and I was afraid that it would turn into resistance now. Although, it was broken without much resistance this week and the price is already trading above it now.

ABOUT THE AUTHOR See More
Skerdian Meta
Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.

Related Articles

Comments

0 0 votes
Article Rating
Subscribe
Notify of
0 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments

HFM

Doo Prime

XM

Best Forex Brokers