Good morning traders, it’s Wednesday the 8th of July and time for today’s 08-07-2020 German DAX analysis. As I mentioned yesterday, we seem to have failed to break above the previous high, so the bullish trend is failing. We are only a few points away from taking out the bullish trend defining level, which would technically turn the market bearish. A correction is always healthy, so it doesn’t necessarily point to a major down swing yet.
DAX Analysis – Review From Last Session
During the last session, we saw the DAX 30 hit a session high of 12803 and a session low of 12509 giving us a range of 294 points compared to the average daily range of 310. At the close of play last session, the market closed at 12525 which was 653 points above the 200EMA and 619 points above the 50EMA.
What Is The DAX 30 Doing Today?
The DAX is currently Neutral.
The German stock market index is currently Neutral with no specific trend. In fact we are pretty much range-bound between 12462 and 12839, so we can either look to fade the two extremes assuming the range trading continues, or wait for a breakout above 12839 or below 12462. The issue with a neutral market, is that we can’t really use the DAX trading strategy with much positive expected value (+EV).. . We have a classical situation on the daily chart whereby the 5EMA is above the 8EMA, the 8EMA is also above the 50EMA and finally the 50EMA is above the 200EMA. That’s a very bullish market, the first sign of a turn could be when the 5EMA breaks below the 8EMA.
Taking a look at the key levels to watch today, watch out for the previous session Point of Control (POC) at 12572 and the previous session Volume Weighted Average Price (VWAP) at 12595. The value area high (VAH) is currently 12612 and the value area low (VAL) is currently 12536.
|Stochastic||K: 62 and D: 72|
|Point of Control (POC)||12572|
|Value Area High (VAH)||12612|
|Value Area Low (VAL)||12536|
|The DAX Pivot||12612|
|The DAX R2||12907|
|The DAX S2||12318|
|Daily 5 EMA||12520|
|Daily 8 EMA||12480|
|Daily 50 EMA||11906|
|Daily 200 EMA||11872|
To keep up with the economic calendar and the latest price action, click this link to open up the DAX chart. Here are the most important announcements for today
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As for my index trading; during the last trading session I took a total of 6 trades (4 DAX trades and 2 FTSE trades). Breaking down my DAX trades, 3 were from the DAX trading strategy (DTI) and 1 was from the regular morning DAX signal. Breaking down my FTSE trades, 1 was from the DAX trading strategy (DTI) and 1 was from the regular morning DAX signal. Overall, I hit 0 winners, 6 losers, and 0 break-even trades. This gave me a total profit of 0.3% for the day (including 2 trades I closed around 8pm).
To keep a track of the trading results, you can read the dax trading spreadsheet. In order to get access to the signals and to the strategy, you will need to be a member of the site. Find out more about membership.
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