The positive mood on the stock market continues. The Dax starts up, and oil prices continue to recover. Encouraging study results for a coronavirus vaccine and further multi-billion dollar economic stimulus in Europe are raising the mood among Dax traders. Hopium is returning to the markets because hope for a vaccine is followed by hope that the economy will soon return to normal. The move by Germany and France for a 500 billion euro EU reconstruction fund was also viewed positively. “Money printer go brrr”.
Watch out for the ZEW index, which reflects the mood of German stock market professionals. Experts forecast an increase to 32 points from 28.2 points in the previous month. And watch out for the Jerome Powell hearing as it will provide information on further economic stimulus.
So Many Opportunities Yesterday
This was taken from yesterday’s price action using our DTI strategy that I share with members. Plenty of spots to enter a trade, take your pick. Remember, you can get a copy of the DAX trading strategy for yourself. All you need to do is get Sierra Chart installed on your machine. If you need a reminder of how to do that, visit the dax trading strategy page.
To keep up with the economic calendar and the latest price action, click this link to open up the DAX chart.
Our DAX signals members get access to the trading strategy and can use it on multiple markets (Sierra Charts required to install the strategy independently).
Important DAX Levels
Taking a look at the key levels to watch today, watch out for the previous session Point of Control (POC) at 10485. Today’s initial balance is between 10678 and 10747, so watch for a momentum break of either of those two levels. The value area high is currently 10504 and the value area low is currently 10426.Here are some more levels to watch out for:
- The 5 EMA (Daily): 10633
- The 8 EMA (Daily): 10641
- The 50 EMA (Daily): 10750
- The 200 EMA (Daily): 11745
DAX Technical Indicators
| Indicator | Value |
|---|---|
| RSI | 51 |
| Stochastic | K: 66 and D: 44 |
| MACD OSMA | -15 |
| Point of Control (POC) | 10485 |
| Value Area High (VAH) | 10504 |
| Value Area Low (VAL) | 10426 |
| The DAX Pivot | 10482 |
| The DAX R2 | 10659 |
| The DAX S2 | 10305 |
