The DAX broke the trend defining low on Friday. We talked about how the DAX retracement continues, but it took out the previous level indicating the bullish momentum has ended, temporarily. The market will be lead by economic releases and COVID-19 updates this week. Trading on Friday was quiet, but today will likely see an uplift in activity.
There are no key data releases today so the focus will be on the incoming virus numbers and US-China relations. However, looking ahead this week, we have the Fed minutes on Wednesday to scrutinise before the important September Fed meeting, when a new target may be in focus. Brexit negotiations between the EU and UK resume this week. And we will have August PMI figures (on Friday) from the Euro area, Germany, France and the US will be monitored to see if the recovery continued in August after the encouraging July numbers.
It seems that the COVID-19 numbers have worsened again in Europe. Over the weekend, Italy told nightclubs to close, matching an identical move in Spain on Friday. The French health agency said that ‘the situation is worrying” and the French government now proposes mandatory use of masks in offices. I’m sure we’re all starting to get tired of hearing about this now.
DAX 30 Review From Last Session
During the last session, we saw the DAX 30 get to a session high of 13016 and a session low of 12791 giving us a range of 225 points compared to the average daily range of 260. At the close of play last session, the market closed at 12869 which was 769 points above the 200EMA and 357 points above the 50EMA.
What Is The DAX 30 Doing Today?
The DAX is currently Neutral.
The German DAX 30 index is currently Neutral with no specific trend. In fact we are pretty much range bound between 12791 and 13104, so we can either look to fade the two extremes assuming the range trading continues, or wait for a breakout above 13104 or below 12791. The issue with a netural market, is that we can’t really use the DAX trading strategy with much positive expected value (+EV).
DAX 30 Index Key Levels
Taking a look at the key levels to watch today, watch out for the previous session Point of Control (POC) at 12869 and the previous session Volume Weighted Average Price (VWAP) at 12878. The value area high (VAH) is currently 12894 and the value area low (VAL) is currently 12813.
DAX Technical Indicators
| Indicator | Value |
|---|---|
| RSI | 54 |
| Stochastic | K: 72 and D: 75 |
| MACD OSMA | 7 |
| Point of Control (POC) | 12869 |
| Value Area High (VAH) | 12894 |
| Value Area Low (VAL) | 12813 |
| The DAX Pivot | 12892 |
| The DAX R2 | 13118 |
| The DAX S2 | 12667 |
| Daily 5 EMA | 12901 |
| Daily 8 EMA | 12864 |
| Daily 50 EMA | 12512 |
| Daily 200 EMA | 12100 |
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 2 trades, so it was a pretty quiet session (1 DAX trade and 1 FTSE trade). Breaking down my DAX trade, 0 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, 0 losers, and 0 break-even trades. This gave me a total profit of 0.4% for the day (including 2 trades I closed around 8pm).
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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