Good morning traders, it’s Friday the 21st of February and time for today’s German DAX 30 analysis. Dax signals weak start to trading – Coronavirus spread is probably to blame. It seems that most of the news wires do the same thing “if in doubt, blame a popular reason. What’s popular at the moment, Coronavirus. Ok, blame that.”
Allianz increases profit thanks to life insurance business – stock turns negative in the pre-market. Asian exchanges are mostly down and the DAX 30 has turned from Bullish to Bearish.
Is anyone else finding the DAX challenging at the moment? Because I am (trading the lower time frames is really tricky right now).
DAX 30 Review From Last Session
During the last session, we saw the DAX 30 tag a session high of 13818 and a session low of 13634 giving us a range of 184 points. When you compare that to the average daily range of 145, you can see that although we were 39 points above the average, the market flipped from a bullish to a bearish bias. This means the session was better suited to range trading strategy. Unfortunately for us, as we’ve said many times before, range trading is not great for our DAX trading strategy. Speaking generally, after considering the previous day’s price action, it’s clear we had a bearish session that ended up 98 points lower on the day.
DAX 30 Outlook
The German stock market index is currently Bearish, showing a progressive series of lower lows and lower highs. The trend defining level is currently 13720, so the market remains bearish below that level. In order for the market to remain bearish, we need to take out 13557. I will be looking to use the DAX trading strategy to provide some useful setups today.
Important DAX Levels
Looking at the key levels to watch today, watch out for the previous session Point of Control (POC) at 13758. Today’s initial balance is between 13639 and 13718, so watch for a momentum break of either of those two levels. The value area high is currently 13776 and the value area low is currently 13695. Here are some more levels to watch out for:
- The 5 EMA (Daily): 13690
- The 8 EMA (Daily): 13512
- The 50 EMA (Daily): 13911
- The 200 EMA (Daily): 13616
- The Daily Pivot: 13722
- The Daily R2: 13906
- The Daily S2: 13538
The DAX trading strategy produces plenty trading signals and works on Sierra Chart. 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.