DAX Technical Analysis
Week 30 2019

Technical Analysis, DAX Outlook, Economic Calendar, Key Levels and Current Bias

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Friday 26th July 2019

DAX Target For The Downside

If the DAX was to break this upsloping centre line, then perhaps we have an action reaction setup playing out. That would mean somewhere in the 12,1xx range.

DAX eyes next target

Rate Cuts on the Horizon?

Mario Draghi has paved the way for a fresh package of monetary stimulus to boost the ailing eurozone economy before he departs in October, signalling the European Central Bank will cut rates and embark on a fresh round of asset purchases. The ECB president said on Thursday that officials at the eurozone’s central bank would look into a range of stimulus options — including rate cuts, a commitment to keep policy exceptionally loose for years to come and another quantitative easing package — to counter fears that the bank would persistently undershoot its inflation target of just under 2 per cent. "A considerable mass of inflation expectations are moving towards [a belief that there will be] lower inflation. We don’t like it and therefore we are determined to act." said Draghi.

ECB watchers viewed his ratcheting up of the rhetoric on inflation as a clear sign that the governing council would, at its next meeting in September, join a growing chorus of central bankers loosening policy to counter fears of a global slowdown. Mr Draghi is due to step down after the ECB’s October meeting, to be replaced by Christine Lagarde, currently head of the IMF. "It now increasingly looks as if the September meeting will not only bring a single measure but rather a package of several measures" said Carsten Brzeski, chief economist at ING Germany.


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Thursday 25th July 2019

ECB holds rates, hints at cut

ECB hint at a rate cut, which will obviously send the DAX to all time highs if they do, this recent price action is probably speculating this. Why? Because it continues to pave the way for cheaper borrowing, which means more accessible capital available for business.

DAX Shorts Working Well

Taking the shorts from the DAX trading strategy would be working nicely today

DAX Trading Strategy Shorts

DAX Early Setups

Dax Early Trade Setup

European markets are awaiting results of the votes for the leader of United Kingdom's Conservative Party and the next prime minister, expected around 11:45 am local time. Boris Johnson, former secretary of foreign affairs, is widely expected to beat Jeremy Hunt, the sitting top diplomat. In the last round, Johnson won 162 votes, more than double the number of Tory MPs that backed Hunt. Polls also suggested that more than two-thirds of conservatives support the former mayor of London and a prominent Brexiteer. Investors also anticipated the monetary policy update from the European Central Bank, set for release later during the session.

What To Expect Today - News

The measure of mood among managers in Germany's private sector reached the lowest mark since November 2014, Ifo institute said on Thursday in its monthly update. The headline in business climate landed at 95.7 points, the worst reading since April 2013. The index was revised by 0.1 points higher to 97.5 for June. The current assessment component fell 1.7 points to 99.4, the weakest level since May 2016 though the previous result was mended upward by a relatively strong 0.3 points. The forward-looking measure slumped 1.8 points and another 0.2 from the revision to 92.2. Expectations were last this pessimistic exactly ten years ago.

Risk appetite was plentiful on Thursday upon the opening bell on equity exchanges in the European Union. The International Monetary Fund's substantial downgrades to economic growth projections and ugly numbers on manufacturing spurred hopes in the renewal of stimulus by the European Central Bank. Policymakers, who are meeting today and are due to issue a monetary policy update, have been expressing willingness to lower interest rates and the least the market expected for today was enhanced guidance and a schedule for asset purchases. Stocks were helped by a general if not strong improvement in company results as the earnings season kicked into higher gear. Safe haven gold was insignificantly lower at 9:17 am CET, selling for $1,425.5 per ounce and silver retreated 0.25% to $16.55 for one troy ounce. The euro slipped 0.09% to $1.11301, nearing a two-month low, and just 0.03% to £0.89208, as it looked to touch the weakest point in almost five weeks. The pound moved 0.06% to the red to change hands for $1.2477. The FTSE 100 was up by a mere 0.05% after a somewhat more upbeat start AstraZeneca was the best performer, spiking 5.77% after solid earnings came out. The German DAX index gained 0.22% led by Deutsche Bank's 1.7% surge. The CAC 40 rallied 0.72% as Schneider Electric climbed 3.51% to the top of the chart.


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Wednesday 24th July 2019

DAX Setups

The bullet count would have been hit yesterday (three stop max). There was a nice trade, which would have been closed early due to price closing below the supertrend dots (circled) after price was above the deviation high (yellow candles)

DAX Signal Long

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Tuesday 23rd July 2019

DAX Long Setup

This is a DAX long setup. The background is green, the candle turned green and we have not seen the stretched yellow candles. Let's see how it plays out

DAX Signal Long

What To Expect Today - News

Investors showed risk appetite on Tuesday ahead of the official start of trading at European stock exchanges and were waiting for a monetary policy update from the European Central Bank. Worried about the outlook for the economy, rate-setters have expressed willingness to lower borrowing costs and reintroduce stimulus. Market participants were looking for more detailed guidance at the end of this week's meeting. In other news, the United Kingdom's ruling Conservative Party was due to announce who its next leader and prime minister would be amid concern about the possibility of a disorderly Brexit.

European markets are awaiting results of the votes for the leader of United Kingdom's Conservative Party and the next prime minister, expected around 11:45 am local time. Boris Johnson, former secretary of foreign affairs, is widely expected to beat Jeremy Hunt, the sitting top diplomat. In the last round, Johnson won 162 votes, more than double the number of Tory MPs that backed Hunt. Polls also suggested that more than two-thirds of conservatives support the former mayor of London and a prominent Brexiteer. Investors also anticipated the monetary policy update from the European Central Bank, set for release later during the session.

DAX Technical Analysis Video

Nothing significant to share with a video today

DAX Charts

DAX Major Swings DAX Intermediate Swings DAX Key Levels

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Tuesday 23rd July 2019

DAX Long Setup

This is a DAX long setup. The background is green, the candle turned green and we have not seen the stretched yellow candles. Let's see how it plays out

DAX Signal Long

What To Expect Today - News

Investors showed risk appetite on Tuesday ahead of the official start of trading at European stock exchanges and were waiting for a monetary policy update from the European Central Bank. Worried about the outlook for the economy, rate-setters have expressed willingness to lower borrowing costs and reintroduce stimulus. Market participants were looking for more detailed guidance at the end of this week's meeting. In other news, the United Kingdom's ruling Conservative Party was due to announce who its next leader and prime minister would be amid concern about the possibility of a disorderly Brexit.

European markets are awaiting results of the votes for the leader of United Kingdom's Conservative Party and the next prime minister, expected around 11:45 am local time. Boris Johnson, former secretary of foreign affairs, is widely expected to beat Jeremy Hunt, the sitting top diplomat. In the last round, Johnson won 162 votes, more than double the number of Tory MPs that backed Hunt. Polls also suggested that more than two-thirds of conservatives support the former mayor of London and a prominent Brexiteer. Investors also anticipated the monetary policy update from the European Central Bank, set for release later during the session.

DAX Technical Analysis Video

Nothing significant to share with a video today

DAX Charts

DAX Major Swings DAX Intermediate Swings DAX Key Levels

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Monday 22nd July 2019

DTI Strategy Tutorials

Let's talk you through how to trade the DAX with our DTI strategy, using some live examples.

Example 4 - Target Hit

And there you have it. Target hit! Notice how no further trades would be opened (although you can if you want), because the original one would still be open.

DAX Target Hit
Example 4 - Long Entry

A simple long example. The background is green (look for longs), the price action turns from the regular red/white candles to bullish candles (green) which signals a long entry. The strategy would enter at the start of the next candle, put the stop loss under the previous supertrend dot and target 4:1.

DAX Long Entry
Example 3 - Stop Loss

This strategy aims for 4:1 reward to risk, so that means winners are generally much larger than losers, however you will likely see more losers than winners. Stop losses are the cost of business, they are impossible to avoid without taking on too much risk.

DAX Stop Loss
Example 2 - Closing Criteria

As price action went above the deviation high (yellow candle) you can watch for price to close below the supertrend dots to close the trade early.

Closing DAX DTI trade
Example 2 - Valid Long Setup

The background is green, so looking for longs. Price action turns from regular candles (red/white) to bullish candle (green), which is a buy signal. The strategy would enter at the start of the next candle, put the stop loss under the previous supertrend dot and target 4:1.

Example 1 - Invalid Long Setup

This is a long setup which could be ignored because price action turned green with a red background, it's not a valid setup.

DAX Long Setup Ignored

DAX Technical Analysis

German DAX Analysis - Major Trend German DAX Analysis - Intermediate Trend

Here is the current DAX overview from the Dax Dashboard:

DAX Dashboard 8:48am

DAX Technical Analysis Video

No video today

DAX Charts


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