Good morning traders, it’s Friday the 17th of July and time for today’s 17-07-2020 German DAX 30 analysis and let’s see if the DAX aims for 13,000 again today. The DAX is gaining momentum again and Wirecard are about to get thrown out of the German Index faster than expected.
As far as whats on the agenda today, we have the much-awaited EU leaders meeting starting at 10:00 CEST. The revised EC proposal put on the table is broadly similar to the proposal tabled in late May. The current proposal of EUR750bn is split between EUR500bn in grants and EUR250bn in loans. An agreement is unlikely this weekend. Yesterday’s ECB meeting was uneventful, except for Largarde clearly stating several times that the ECB intends to use the full €1.35 billion PEPP envelope (which will probably be increased at some point).
The COVID-19 cases continue to spread at a worrying pace, notably in the US where states such as Texas are rumoured to shut down as early as today. Rising COVID-19 numbers, notably record fatalities in Florida and Texas, dented risk sentiment. The risk of continued lockdowns is increasing which then also increases the downside risks to the economy.
DAX 30 Review From Last Session
During the last session, we saw the DAX 30 touch a session high of 12994 and a session low of 12764 giving us a range of 230 points compared to the average daily range of 267. At the close of play last session, the market closed at 12908 which was 986 points above the 200EMA and 824 points above the 50EMA.
DAX 30 Outlook
The DAX aims for 13,000 again and is currently Bullish
The German stock market index is currently showing a progressive series of higher highs and higher lows. The trend defining level is currently 12521, so the market remains bullish above that level. In order for the market to remain bullish, we need to take out 12994. I will again be looking to use the DAX trading strategy to provide some useful setups today.. It’s worth mentioning that the daily DAX RSI reading is currently 71, which is pretty overbought. Although we know that momentum is clearly bullish right now, the buying pressure now has a much higher likelihood of running out of steam. We can still get long, but perhaps we should be cautious about entering longs. We have a classical situation on the daily chart whereby the 5EMA is above the 8EMA, the 8EMA is also above the 50EMA and finally, the 50EMA is above the 200EMA. That’s a very bullish market, the first sign of a turn could be when the 5EMA breaks below the 8EMA.
DAX Index Key Levels
Taking a look at the key levels to watch today, watch out for the previous session Point of Control (POC) at 12905 and the previous session Volume Weighted Average Price (VWAP) at 12887. The value area high (VAH) is currently 12955 and the value area low (VAL) is currently 12851.
DAX Technical Indicators
| Indicator | Value |
|---|---|
| RSI | 71 |
| Stochastic | K: 73 and D: 83 |
| MACD OSMA | 6 |
| Point of Control (POC) | 12905 |
| Value Area High (VAH) | 12955 |
| Value Area Low (VAL) | 12851 |
| The DAX Pivot | 12888 |
| The DAX R2 | 13119 |
| The DAX S2 | 12658 |
| Daily 5 EMA | 12766 |
| Daily 8 EMA | 12706 |
| Daily 50 EMA | 12084 |
| Daily 200 EMA | 11922 |
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