The DAX breaks 13k again, as we expected! I wonder whether the market hits fatigue and corrects, or whether it continues that typical DAX momentum and goes to the moon. Why are we rallying? Free money of course! A deal for the EU recovery package (and budget) was agreed allowing the money printer to continue to go brrr! Is the DAX heading to 15,000? There will likely be a lot of scrutiny surrounding the package, specifically to look for the more specific details such as the distribution and the share of loans versus grants among member states. Although an agreement has been reached, the price action yesterday suggested that a lot of the bullish activity has already been priced in. But free money, combined with low interest rates, combined with global sentiment towards coronavirus beginning to relax in many major countries equals prime bullish conditions.
21-07-2020 DAX 30 Analysis
Good morning traders, it’s Tuesday the 21st of July and time for today’s 21-7-2020 German DAX 30 analysis.
During the last session, we saw the DAX 30 get to a session high of 13096 and a session low of 12799 giving us a range of 297 points compared to the average daily range of 246. At the close of play last session, the market closed at 13075 which was 1118 points above the 200EMA and 875 points above the 50EMA.
What Is The DAX Doing Today?
The DAX is currently Bullish.
The DAX30 index is currently showing a progressive series of higher highs and higher lows. The trend defining level is currently 12799, so the market remains bullish above that level. In order for the market to remain bullish, we need to take out 13250. 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 76, 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 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 30 Key Levels
Moving on to the key levels to watch today, watch out for the previous session Point of Control (POC) at 12979 and the previous session Volume Weighted Average Price (VWAP) at 12959. The value area high (VAH) is currently 13058 and the value area low (VAL) is currently 12925.
DAX Technical Indicators
| Indicator | Value |
|---|---|
| RSI | 76 |
| Stochastic | K: 97 and D: 96 |
| MACD OSMA | 33 |
| Point of Control (POC) | 12979 |
| Value Area High (VAH) | 13058 |
| Value Area Low (VAL) | 12925 |
| The DAX Pivot | 12990 |
| The DAX R2 | 13287 |
| The DAX S2 | 12693 |
| Daily 5 EMA | 13024 |
| Daily 8 EMA | 12926 |
| Daily 50 EMA | 12200 |
| Daily 200 EMA | 11957 |
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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DAX & FTSE Trading Signals
As for my index trading; during the last trading session I took a total of 4 trades (2 DAX trades and 2 FTSE trades). Breaking down my DAX trades, 1 was from the DAX trading strategy (DTI) and 1 was from the regular morning DAX signal. Breaking down my FTSE trades, 2 were from the FTSE trading strategy (Using the DAX DTI) and 0 were from the regular morning FTSE signal. Overall, I hit 1 winner, 2 losers, and 0 break-even trades. This gave me a total profit of 4.15% for the day (including a trade I closed around 8pm).
| DAX DTI | DAX DAILY | FTSE DTI | FTSE DAILY | |
| Trades | 1 | 1 | 2 | 0 |
| Win | 1 | 0 | 0 | 0 |
| Loss | 0 | 0 | 2 | 0 |
| B/e | 0 | 0 | 0 | 0 |
| Closed Early | 0 | 1 | 0 | 0 |
| Profit | +4% | +2.15% | -2% | 0 |
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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