Is the DAX heading for all time high?
As the Dax jumps to its highest level since the beginning of the Corona crisis, we have to ask ourselves whether the DAX is heading for its all time high. Consistent gains have helped the Dax rise to a new high this morning continuing the remarkable recovery since the beginning of the Corona crash on February 24th. The entire loss from earlier in the year has now almost completely recovered. We see US indices at all time highs and we still see signs that the eurozone are willing to continue printing money. So it seems inevitable that the DAX will follow suit and track 14,000 eventually.
Brexit continues to show resistance; comments from EU chief Brexit negotiator Barnier confirmed the previously known stance yesterday, i.e. the UK apparently does not show willingness to compromise on fishing and that fair-play mechanisms are needed notably on state aid. Currently, the transition period expires on 31 December and the UK has formally ruled out an extension, “so a deal must be reached” before 31 December. But we’ve heard this line many times before already. As both the EU and the UK need time for ratification, Barnier mentioned ‘end of October’ but don’t be surprised if the negotiations are extended into early November.
Watch out for the final August PMIs and retail sales for July. France is also expected to unveil more details about its new stimulus plan. These things add detail to the ‘story’ that is fiscal stimulus and money printing.
DAX 30 Analysis
During the last session, we saw the DAX 30 tag a session high of 13355 and a session low of 13008 giving us a range of 347 points compared to the average daily range of 236. At the close of play last session, the market closed at 13349 which was 1132 points above the 200EMA and 609 points above the 50EMA.
Important DAX 30 Levels
Moving on to the key levels to watch today, watch out for the previous session Point of Control (POC) at 13240 and the previous session Volume Weighted Average Price (VWAP) at 13220. The value area high (VAH) is currently 13308 and the value area low (VAL) is currently 13200.
|Stochastic||K: 99 and D: 85|
|Point of Control (POC)||13240|
|Value Area High (VAH)||13308|
|Value Area Low (VAL)||13200|
|The DAX Pivot||13237|
|The DAX R2||13584|
|The DAX S2||12890|
|Daily 5 EMA||13234|
|Daily 8 EMA||13165|
|Daily 50 EMA||12740|
|Daily 200 EMA||12217|
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