The German IFO index is undergoing a strong rebound from the lows in April but remained below pre-corona crisis levels in June. Today’s numbers will likely confirm whether the German recovery has gathered speed in July. The general consensus is that we will see continued improvement.
Covid-19 developments, central banking stimulus and continued fears about the developing China v US ‘cold war’ will set the tone on the markets this week. There are also some interesting economic releases with the Fed meeting on Wednesday as well as Q2 GDP figures in US (Thursday) and a range of European countries (Friday) that will reveal more about the economic fallout. Keep an eye on the Sino-American relations, because the tensions are escalating again as Beijing ordered the US to shut a consulate in a tit-for-tat retaliation
Republicans are expected to reveal their fresh proposals for stimulus today, rumoured to include direct cash payments of USD1200 per person and reduced federal unemployment benefits.
Good morning traders, it’s Monday the 27th of July and time for today’s 27-7-2020 German DAX 30 analysis.
During the last session, we saw the DAX 30 touch a session high of 13029 and a session low of 12773 giving us a range of 256 points compared to the average daily range of 222. At the close of play last session, the market closed at 12825 which was 830 points above the 200EMA and 519 points above the 50EMA. We actually broke below a key trend defining level, turning the market bearish.
What Is The DAX 30 Doing Today?
The DAX is currently Bearish.
The DAX Index index is currently showing a progressive series of lower lows and lower highs. The trend defining level is currently 13214, so the market remains bearish below that level. In order for the market to remain bearish, we need to take out 12773. I will be looking to use the DAX trading strategy to provide some useful setups today. The main risk to the bearish trend is a sideways consolidation, which will produce many failed shorting setups.
DAX Levels To Watch
Moving on to the key levels to watch today, watch out for the previous session Point of Control (POC) at 12840 and the previous session Volume Weighted Average Price (VWAP) at 12863. The value area high (VAH) is currently 12889 and the value area low (VAL) is currently 12808.
DAX Technical Indicators
| Indicator | Value |
|---|---|
| RSI | 62 |
| Stochastic | K: 43 and D: 48 |
| MACD OSMA | -19 |
| Point of Control (POC) | 12840 |
| Value Area High (VAH) | 12889 |
| Value Area Low (VAL) | 12808 |
| The DAX Pivot | 12876 |
| The DAX R2 | 13132 |
| The DAX S2 | 12619 |
| Daily 5 EMA | 12923 |
| Daily 8 EMA | 12914 |
| Daily 50 EMA | 12306 |
| Daily 200 EMA | 11995 |
Economic Calendar
To keep up with the economic calendar and the latest price action, click this link to open up the DAX chart. Here are the most important announcements for today.
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As for my index trading; during the last trading session I took a total of 4 trades (3 DAX trades and 1 FTSE trade). Breaking down my DAX trades, 2 were from the DAX trading strategy (DTI) and 1 was from the regular morning DAX signal. Breaking down my FTSE trade, 0 were from the FTSE trading strategy (Using the DAX DTI) and 1 was from the regular morning FTSE signal. Overall, I hit 0 winners, 4 losers, and 0 break-even trades. This gave me a total profit of -4% 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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