Good morning traders, it’s Wednesday the 26th of February and time for today’s German DAX 30 analysis.
Today most eyes will be on the contagion of the coronavirus and its implications for the global economy, which has driven the recent risk-off sentiment. So right now there is no DAX recovery in sight – we have a hangover mood on the stock markets. The fear of the consequences of the global spread of the corona virus increases the pressure on the German stock market. Asia’s stock exchanges lose again and US stock markets are burdening. It’s bleak at the moment, even cryptos are tanking. At least i’m keeping busy with our forex signals.
Tomorrow, focus turns to European confidence indicators for February and US core capex for January.
DAX 30 Review From Last Session
During the last session, we saw the DAX 30 find a session high of 13151 and a session low of 12599 giving us a range of 552 points. When you compare that to the average daily range of 200, you can see we were 352 points above the average suggesting a strong momentum day, which is exactly what we like to see when using the DAX trading strategy. To summarise, after considering the previous day’s price action, it’s clear to see we had a bearish session that ended up 449 points lower on the day.
DAX Outlook and Bias
The DAX index is currently Bearish, showing a progressive series of lower lows and lower highs. The trend defining level is currently 12755, so the market remains bearish below that level. In order for the market to remain bearish, we need to take out 12356. I will be looking to use the DAX trading strategy to provide some useful setups today.
Important DAX 30 Levels
Moving on to the key levels to watch today (despite it being ridiculous if we get back up here today), watch out for the previous session Point of Control (POC) at 12791. Today’s initial balance is between 12489 and 12693, and we’ve already had a momentum break to the downside. The value area high is currently 12975 and the value area low is currently 12599. Here are some more levels to watch out for:
- The 5 EMA (Daily): 12915
- The 8 EMA (Daily): 13109
- The 50 EMA (Daily): 13310
- The 200 EMA (Daily): 12762
- The Daily Pivot: 12789
- The Daily R2: 13342
- The Daily S2: 12236
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