Good morning traders, it’s Wednesday the 24th of June and time for today’s 24-06-2020 German DAX 30 analysis. The main stories at the moment are Wirecard, Donald Trump’s attempts to pull the wool over American’s eyes by relaxing environmental laws during the coronavirus pandemic (when people are less likely to pay much attention to what he’s doing) and also the US coronavirus cases increase to levels not seen since May. I’ll talk about Wirecard.
The wirecard story continues as Munich prosecutors go after the former leadership! The company has been caught lying about nearly €2billion on their balance sheet.
Yesterday morning, Munich criminal prosecutors announced that they arrested Markus Braun on Monday evening. He spent a night in custody and on Tuesday he was released on bail (5m euro) – he has to report to police on weekly basis, but is not in custody anymore. The prosecutors are also going after the other leadership. They are all accused of inflating the company balance sheet and giving wrong information to investors to make the shares more attractive. Loosely defined as fraud.
Wirecard said the money is highly unlikely to have ever existed. This made me laugh. That’s an admission of guilt if I ever saw one. The money was supposed to have been an escrow account in the Philippines. The two banks that were supposedly managing that money came out and said that it never existed because Wirecard of the trustee had never been a client. The Philippines Central bank over the weekend said that the money never entered their financial system.
So this money was never really there! Wirecard is currently in talks with banks that gave them loans of over €2 billion. Those banks can terminate those loans by the end of June. This is because Wirecard did not publish their financial results by the deadline in the credit contract. So if the banks decide to terminate those loans, then Wirecard will go bust. Simple.
DAX 30 Review From Last Session
During the last session, we saw the DAX 30 touch a session high of 12595 and a session low of 12135 giving us a range of 460 points compared to the average daily range of 359. At the close of play last session, the market closed at 12428 which was 610 points above the 200EMA and 769 points above the 50EMA.
Where Is The DAX 30 Heading?
The DAX is currently Neutral.
The DAX30 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. As we already know, a neutral market makes it very difficult to use the DTI trading strategy.
Important DAX Levels
Looking at the key levels to watch today, watch out for the previous session Point of Control (POC) at 12478 and the previous session Volume Weighted Average Price (VWAP) at 12466. The value area high (VAH) is currently 12551 and the value area low (VAL) is currently 12404.
|Stochastic||K: 84 and D: 69|
|Point of Control (POC)||12478|
|Value Area High (VAH)||12551|
|Value Area Low (VAL)||12404|
|The DAX Pivot||12386|
|The DAX R2||12846|
|The DAX S2||11925|
|Daily 5 EMA||12357|
|Daily 8 EMA||12324|
|Daily 50 EMA||11659|
|Daily 200 EMA||11818|
My Trading Update
As for my index trading; during the last trading session I took a total of 4 trades (2 DAX trades and 2 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, 1 was from the DAX trading strategy (DTI) and 1 was from the regular morning DAX signal. Overall, I hit 1 winner, 2 losers, and 1 break-even trade. This gave me a total profit of 3% for the day.
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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