Good morning traders, it’s Tuesday the 26th of May and time for today’s German DAX 30 analysis. It was bank holiday yesterday in the UK, so I was not trading indices. Before we get to the numbers, let’s have a quick outlook. Today we get consumer confidence numbers for Germany and the US. We’ve seen small increases in consumer confidence as the COVID-19 data improves lockdowns start to ease.
In the US, new home sales in April are expected to have declined further. That said, the US housing market has not taken a major ‘financial crisis’-like hit and, based on MBA mortgage applications, things seem to be improving in the US housing market.
The main market distraction at the moment is still COVID-19, especially the easing of lockdown restrictions in the advanced economies.
We saw a positive opening on the equity markets this morning despite the tensions between the US and China and the protests in Hong Kong. However, the opening of the economies and the better-than-expected German business expectations data released yesterday is bullish (temporarily) for the equity markets.
Many eyes are waiting for the ECB to increase the PEPP programme at the meeting on 4 June, or loosen the limits. The ECB will reach €750bn sometime in late September/early October.
DAX 30 Review From Last Session
During the last session, we saw the DAX 30 touch a session high of 11401 and a session low of 11113 giving us a range of 288 points compared to the average daily range of 265. At the close of play yesterday, we closed at 11395 which was 322 points below the 200EMA and 535 points above the 50EMA.
DAX 30 Outlook
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.
DAX 30 Index Key Levels
Looking at the key levels to watch today, watch out for the previous session Point of Control (POC) at 11352. Today’s initial balance is between 11446 and 11535, so watch for a momentum break of either of those two levels. The value area high is currently 11401 and the value area low is currently 11218.Here are some more levels to watch out for:
- The 5 EMA (Daily): 11258
- The 8 EMA (Daily): 11148
- The 50 EMA (Daily): 10860
- The 200 EMA (Daily): 11717
DAX Technical Indicators
| Indicator | Value |
|---|---|
| RSI | 69 |
| Stochastic | K: 94 and D: 94 |
| MACD OSMA | 65 |
| Point of Control (POC) | 11352 |
| Value Area High (VAH) | 11401 |
| Value Area Low (VAL) | 11218 |
| The DAX Pivot | 11303 |
| The DAX R2 | 11591 |
| The DAX S2 | 11015 |
