Good morning traders, it’s Thursday the 28th of May and time for today’s German DAX 30 analysis.
Most confidence indicators released so far have increased slightly in May but remain at very low levels. US jobless claims will also be in focus. The focus is currently on politics, for example, the negotiations around the EU recovery fund. In general, the proposal exceeded market expectations as it envisages EUR250bn in loans on top of EUR500bn in grants, which were originally included in the German-Franco proposal last week. Also keep an eye on the increasing US-China tensions and Brexit, where headlines are suggesting things are moving in the wrong direction.
Global risk sentiment and equity markets continue to be on a strong footing despite the tensions building between the US and China, again. Yesterday, the DAX climbed to a 12-week high and pointing to further increases in their upcoming sessions. There is a sense that the opening up of the global economy is going well and the virus is under control.
DAX 30 Review From Last Session
During the last session, we saw the DAX 30 touch a session high of 11748 and a session low of 11465 giving us a range of 283 points compared to the average daily range of 271. At the close of play yesterday, we closed at 11721 which was 4 points above the 200EMA and 795 points above the 50EMA.
DAX 30 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 over to the key levels to watch today, watch out for the previous session Point of Control (POC) at 11702. Today’s initial balance is between 11686 and 11769, so watch for a momentum break of either of those two levels. The value area high is currently 11735 and the value area low is currently 11620.Here are some more levels to watch out for:
- The 5 EMA (Daily): 11514
- The 8 EMA (Daily): 11373
- The 50 EMA (Daily): 10926
- The 200 EMA (Daily): 11717
DAX Technical Indicators
| Indicator | Value |
|---|---|
| RSI | 67 |
| Stochastic | K: 92 and D: 94 |
| MACD OSMA | 88 |
| Point of Control (POC) | 11702 |
| Value Area High (VAH) | 11735 |
| Value Area Low (VAL) | 11620 |
| The DAX Pivot | 11645 |
| The DAX R2 | 11928 |
| The DAX S2 | 11361 |
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