Welcome to the German DAX30 Market Summary. The DAX 30 index stabilises after some heavy losses and we are expecting much of the same for today. We are expecting a slightly bullish day today, but overall a lower than average daily price range is likely.
So if prices are likely to rise today, can we expect us to take out the 12800-12850 zone? I am thinking that if we reach that zone, it’s going to alert the sellers. Unless the market surprises us again, I don’t think we will take out that 800-850 zone today. As we saw yesterday, the upside will probably be limited.
German DAX30 Market Summary – News
As far as news is concerned, Daimler has poured water over the bulls by issuing a profit warning. The Stuttgart carmaker lowered the profit forecast for 2018 and justified this with the trade conflict between the US and China as well as the diesel affair. In fact, many companies (worldwide) are concerned about the trade war possibilities, but Daimler is the first major company to issue a profit warning in the wake of rising tariffs.
Today is a day for the GBP and the CHF. The Bank of England and the Swiss National Bank both have their rate decisions today. So there will be volatility expected with those two related fx pairs.
The Eurogroup meeting is going on all day as well. This is a meeting of the Finance Ministers of the EU countries held the day before the Economic and Financial Affairs Council Meeting. Eurogroup is an informal structure of the European Council, which exercises political control over the euro. Only Eurogroup members can vote on euro-related issues.
21-06-2018 German DAX30 Market Summary – Analysis
The trading range yesterday was under 100 points. This is despite there being a +35 point gap. The daily high of 12760 formed within the first half an hour trading. Then shortly after we saw the high of the day, the morning’s gap closed. All of this price action was within the first hour of trading. We saw a succession of lower lows and lower highs during the first half of the day, before a very small range in the second half. But overall, there is not much to discuss in terms of price action, it was pretty boring.
However, during the webinar, we were discussing the 250 tick chart and looking at a couple of interesting levels. The first level of interest came from an ignition point and the second interesting level came from symmetrical price action at the bottom of a bearish minor impulse wave. When we mark those levels on the chart, we will notice how price continues to react to them.
If price was to continue heading lower, then we really need to ‘zoom’ the 12600 zone. This zone is becoming stronger and only a fast move through that area will signal intent (for me). But at the moment, the only interesting setup is a move back towards the 800-850 zone.
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