Morning traders and welcome to the German DAX 30 Market Summary. The DAX finished up around 1.2% lower yesterday after a pretty bearish day which failed to take out the previous day’s high AND broke and closed below the previous day’s low. That leaves the market around 0.3% down for the week and 0.8% down for the month so far. It was a similar story for most of the European and American indices.
German DAX 30 Market Summary
Some traders were interested in the daily candle stick pattern from Tuesday, suggesting that the long tail and tiny candle body is a buying signal, but if we fail to hold the Tuesday low (431 on CFD), it’s not looking quite so positive.
On the daily chart, we have broken below the daily upsloping low-to-low trend line and tested the underside of that trend line at the same point that it intersected with the underside of a median line. When you couple all of that with the candle stick pattern from yesterday, you see a slightly more bearish picture building.
German DAX 30 Market Summary – Daily Chart
We took out two previous POCs yesterday and have carved out a very unusual looking daily profile with a massive low volume void in the middle of the price action. I would expect to fill that out at some point, but expect strange price action in there. But for me, the Tuesday low and the 11400 are zones we should add to the watchlist today.
German DAX 30 Market Summary – Eurozone Performance
Shares in main exchanges in the Eurozone switched to negative territory in mid-trade as investors were digesting corporate earnings showing signs of weakness in several sectors. Sentiment was particularly affected by worsened growth forecasts from the European Commission, helping prices of sovereign debt lower, meaning yields rose. The European Union’s executive arm also claimed Italy is on the trajectory to top the limit for budget deficit in 2020. At the same time, markets were on their toes regarding the chances for a final Brexit deal as deadlines loom.
German DAX 30 Market Summary – Brexit
In other news reports of progress in the Brexit saga were released. A full text of the United Kingdom’s withdrawal agreement with the European Union could be published next Tuesday, the Times reported on Thursday citing a draft timetable discussed in Whitehall today. The publication of the Brexit deal will follow a UK Cabinet meeting likely to take place on Monday, as well as a meeting between UK Brexit Secretary Dominic Raab and the EU’s chief Brexit negotiator Michel Barnier the day after. On Wednesday, UK’s Prime Minister Theresa May will make a statement to the House of Commons, the report says. Also, the special EU Brexit summit is reportedly set to happen on November 23-25. President of the European Central Bank Mario Draghi said on Thursday that it is very important for Brussels to prepare for a scenario where no deal is reached with London over United Kingdom’s divorce from the European Union in March next year. Speaking at the Irish Parliament, Draghi reminded that Ireland, more than the rest of eurozone, can suffer negative impact from a potential no-deal Brexit due to its close trade relationship with the UK.
“As regards Brexit, with negotiations ongoing and less than five months to go until the United Kingdom’s departure from the European Union, it is essential to prepare for all possible outcomes, including a no-deal scenario. While the direct trade effects of a hard Brexit would be limited for the euro area as a whole, Ireland is more exposed due to its very close trade relations with the United Kingdom,” Draghi pointed out.
FOMC
The Federal Reserve announced its decision to hold interest rates. Policymakers unanimously opted to hold the federal funds rate in a range of 2% to 2.25%, while adding that it “expects that further gradual increases in the target range for the federal funds rate will be consistent with sustained expansion of economic activity.”
TRADING SIGNALS UPDATE
A much better day yesterday, despite it being much slower in terms of quantity. Only three trades yesterday, and none of them were forex.
Results to date: +218.28% and +4.86% for November so far.
Find out more here: https://thedaxtrader.co.uk/daxtrader-signals-results/
| # | Date | Mkt | Type | Entry | SL | TP | RvR | Close | Pips | Return | Balance |
| 447 | 08-Nov | DAX | S | 11596 | 11620 | 11524 | 3.00% | 11548 | 48 | 1.71% | 31,709 |
| 448 | 08-Nov | FTSE | S | 7127 | 7138 | 7093 | 3.09% | BE | 0 | 0 | 31,709 |
| 449 | 08-Nov | ESTOXX | S | 3247 | 3255 | 3224 | 2.88% | 3244 | 3 | 0.38% | 31,828 |
German DAX 30 Market Summary – KEY LEVELS
09-11-2018 Dax Key Levels
| DAX KEY LEVELS | |
| CFD | |
| Point of Control: | 11523 |
| Value Area High: | 11566 |
| Value Area Low: | 11494 |
| VWAP: | 11551 |
| R2: | 11704 |
| S2: | 11397 |
| Pivot: | 11550 |
| Camarilla Breakout (Bull) | 11600 |
| Camarilla Breakout (Bear) | 11431 |
09-11-2018 DAX Key Levels
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