Welcome to the DAX30 Technical Analysis. 13,000 is in sight again, we managed to get close last night, perhaps we see another attempt this week. The biggest optimists on the trading floor dream three months after the Corona crash again of a new record high. Shares are currently being bought mainly out of hope and a lack of alternatives. Just a warning to anyone thinking of investing in the market. You must know how high the risk of setbacks are!
Markets will watch out for the Fed meeting tomorrow. Yesterday the Fed announced an expansion of its Main Street lending programme, so more firms see the benefit from it and the US markets have already wiped out 2020 losses from earlier in the year, despite ending its economic expansion and falling into a recession. But at the same time, many European indices are not as strong. The slump in German exports due to the Corona crisis accelerated further in April. The Federal Statistical Office said that exports had dropped by 24% in a monthly comparison. This is the strongest monthly decline since the survey began in August 1990. Economists had feared a sharp slump on average, but had only anticipated a drop of 15.6 percent. The value of goods exports fell by 31% percent year-on-year. Imports also plummeted in April, down 16.5 percent on the previous month. So keep watching that space.
DAX30 TECHNICAL ANALYSIS – Review From Last Session
During the last session, we saw the DAX 30 get to a session high of 12933 and a session low of 12676 giving us a range of 257 points compared to the average daily range of 265. At the close of play last session, the market closed at 12933 which was 1164 points above the 200EMA and 1600 points above the 50EMA.
Where Is The DAX Heading?
The DAX is currently Neutral.
The DAX30 index is currently Neutral with no specific trend. In fact, we are pretty much range-bound between 12676 and 12933, so we can either look to fade the two extremes assuming the range trading continues, or wait for a breakout above 12933 or below 12676. The issue with a neutral market, is that we can’t really use the DAX trading strategy with much positive expected value (+EV).. It’s worth mentioning that the daily DAX RSI reading is currently 80, which is pretty overbought. Although we know that momentum is clearly bullish right now, the buying pressure now has a much higher likelihood of running out of steam. We can still get long, but perhaps we should be cautious entering longs.
My Trading Update
As for my index trading; during the last trading session I took a total of 5 trades (3 DAX trades and 2 FTSE trades). Breaking down my DAX trades, 2 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 had a total of 1 winners, which gave me a total profit of 4%.
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.
DAX30 TECHNICAL ANALYSIS – Levels To Watch
Taking a look at the key levels to watch today, watch out for the previous session Point of Control (POC) at 12812 and the previous session Volume Weighted Average Price (VWAP) at 12810. The value area high (VAH) is currently 12861 and the value area low (VAL) is currently 12755.
|Stochastic||K: 86 and D: 93|
|Point of Control (POC)||12812|
|Value Area High (VAH)||12861|
|Value Area Low (VAL)||12755|
|The DAX Pivot||12847|
|The DAX R2||13105|
|The DAX S2||12590|
|Daily 5 EMA||12619|
|Daily 8 EMA||12419|
|Daily 50 EMA||11333|
|Daily 200 EMA||11769|
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