With Tuesday’s EU agreement and virus numbers being generally under control, Europe seems less of a problem for traders. Which is great for the DAX, perhaps we can see another rally after some consolidation. Therefore focus turns to the US, where Congress wants to magically produce another 800 quintillion dollars out of thin air (exaggeration), but they struggle to find common ground on a new stimulus package. I’m almost certain they will produce more dollars and keep interest rates at rock bottom. They have to. They don’t earn anywhere near enough tax receipts to cope with their day to day spending and they can’t afford the interest payments on all their new debt either. It’s a sorry state of affairs really, when you dig a little deeper and ignore what they tell the media. Bring on unlimited money printing and wave goodbye to the dollar? Only the future will show us how significant this money printing will be.

23-07-2020 DAX 30 Analysis

Good morning traders, it’s Thursday the 23rd of July and time for today’s 23-07-2020 German DAX 30 analysis. The DAX is currently rangebound between 13056 – 13195 after reaching its recent high. We talked yesterday in the article (https://thedaxtrader.co.uk/will-dax-reach-another-all-time-high/) about the DAX attempting to find a new all-time high. Perhaps that’s still a possibility. But right now, the market is digesting the most recent wave of its epic rally and will need to find a price that attracts more buyers, perhaps this will be lower levels from here. This comes down to understanding how the DAX moves.

DAX 30 Review From Last Session

During the last session, we saw the DAX 30 reach a session high of 13197 and a session low of 13058 giving us a range of just 139 points compared to the average daily range of 225. At the close of play last session, the market closed at 13133 which was 1154 points above the 200EMA and 866 points above the 50EMA.

DAX Outlook

The DAX is currently Bullish.

The German DAX 30 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 13311. I will again be looking to use the DAX trading strategy to provide some useful setups today.. . 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

Looking at the key levels to watch today, watch out for the previous session Point of Control (POC) at 13109 and the previous session Volume Weighted Average Price (VWAP) at 13117. The value area high (VAH) is currently 13130 and the value area low (VAL) is currently 13096.

DAX Technical Indicators

IndicatorValue
RSI70
StochasticK: 81 and D: 79
MACD OSMA23
Point of Control (POC)13109
Value Area High (VAH)13130
Value Area Low (VAL)13096
The DAX Pivot13129
The DAX R213268
The DAX S212991
Daily 5 EMA13067
Daily 8 EMA12991
Daily 50 EMA12267
Daily 200 EMA11979

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

Economic Calendar

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As for my index trading; during the last trading session I took a total of 3 trades (2 DAX trades and 1 FTSE trade). 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 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, 3 losers, and 0 break-even trades. This gave me a total profit of -2.3% for the day (including a trade I closed around 8pm).

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