Good morning traders, it’s Tuesday the 23rd of June and time for today’s 23-06-2020 DAX 30 analysis. Wirecard continues to dominate headlines after its epic failure to protect its shareholders. The company is involved in by a billion-Euro balance sheet scandal, on par with the severity of Enron. We see a small attempt to recover with shares rising by a good 4 percent. But we’ve seen a 60 percent drop in the Wirecard share price last Thursday which is the second-largest daily loss of a Dax security in [nearly] 32-year history.
I doubt the company will recover from this and another payment processor will come along and pick up the pieces. Yes, the Wirecard shares are much cheaper, but never would I buy into a company that does that, it’s game over for them. When the company admits that bank balances on trust accounts totalling 1.9 billion euros “do not exist with a high degree of probability” then there can only be one explanation: fraudulent documents. What a fail!
23-06-2020 DAX 30 Review From Last Session
During the last session, we saw the DAX 30 reach a session high of 12378 and a session low of 12084 giving us a range of 294 points compared to the average daily range of 354. At the close of play last session, the market closed at 12312 which was 502 points above the 200EMA and 689 points above the 50EMA.
23-06-2020 DAX 30 Analysis Outlook and Bias
The DAX is currently Neutral.
The German DAX 30 index is currently Neutral with no specific trend. In fact, we are pretty much range-bound between 12084 and 12491, so we can either look to fade the two extremes assuming the range trading continues, or wait for a breakout above 12491 or below 12084. The issue with a neutral market is that we can’t really use the DAX trading strategy with much positive expected value (+EV).
23-06-2020 DAX 30 Analysis – Key Levels
Taking a look at the key levels to watch today, watch out for the previous session Point of Control (POC) at 12288 and the previous session Volume Weighted Average Price (VWAP) at 12248. The value area high (VAH) is currently 12307 and the value area low (VAL) is currently 12195.
|Stochastic||K: 61 and D: 53|
|Point of Control (POC)||12288|
|Value Area High (VAH)||12307|
|Value Area Low (VAL)||12195|
|The DAX Pivot||12258|
|The DAX R2||12552|
|The DAX S2||11964|
|Daily 5 EMA||12282|
|Daily 8 EMA||12269|
|Daily 50 EMA||11623|
|Daily 200 EMA||11810|
My Trading Update
As for my index trading; during the last trading session, I took a total of 5 trades (2 DAX trades and 3 FTSE trades). Breaking down my DAX trades, 1 was from the DAX trading strategy (DTI) and 1 was from the regular morning DAX signal. Breaking down my FTSE trades, 2 were from the DAX trading strategy (DTI) and 1 was from the regular morning DAX signal. Overall, I hit 0 winners, 5 losers, and 0 break-even trades. This gave me a total profit of -5% for the day. Not good, but it happens sometimes.
The DAX trading strategy continues to provide plenty of opportunities for you guys, so congrats to those that have invested the time and effort to get that set up on their Sierra charts. Learning the strategy allows you to take control of the opportunities and choose which ones fit your trading style. As for the signals I send out in the morning (9 am daily), I have earned a 33.92% return since April 2020 on DAX and 5.92% return on FTSE since 28th May – which is when I began trading FTSE again.
We’re nearly at the midway point of 2020 and the current forex trading results are doing very well. I am currently at +74.97% for the year after adding +23.06% in quarter 2, so I’m ahead of where I was this time last year, in terms of return. Lockdown has not affected trading that much, so I can not complain. See more of the fx trading signal results.
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.
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