The DAX threatens to break lower and test the 12,800 low again as major stock markets in Europe opened lower on Tuesday with the coronavirus continued threatening to re-emerge and cause the second pandemic wave across the continent. Total positive cases worldwide reached 22 million overnight. Meanwhile, the price of gold has surpassed $2,000 per ounce, and spot silver is hovering around the level of $28 per ounce. I expect a directional decision very soon.
DAX 30 Review From Last Session
During the last session, we saw the DAX 30 get to a session high of 12963 and a session low of 12844 giving us a range of just 119 points compared to the average daily range of 260. At the close of play last session, the market closed at 12927 which was 820 points above the 200EMA and 402 points above the 50EMA.
Where Is The DAX 30 Heading?
The DAX is currently Neutral.
The DAX30 index is currently Neutral with no specific trend, although the DAX threatens to break lower and take out the latest trend defining level to the downside. Yesterday we talked about how the DAX broke the trend defining low so it’s difficult to know for how long the bearish trend would run, especially when you see the Nasdaq reaching new highs. We talked about how the DAX retracement continues to the downside too. But right now, until we break lower, we are pretty much range-bound between 12791 and 13104. As a strategy, 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 neutral market is that we can’t really use the DAX trading strategy with much positive expected value (+EV). If you want a refresh, go back and read what is the DAX retracement target?
DAX 30 Key Levels
As for the key levels to watch today, watch out for the previous session Point of Control (POC) at 12927 and the previous session Volume Weighted Average Price (VWAP) at 12915. The value area high (VAH) is currently 12939 and the value area low (VAL) is currently 12904.
DAX Technical Indicators
| Indicator | Value |
|---|---|
| RSI | 53 |
| Stochastic | K: 58 and D: 66 |
| MACD OSMA | 2 |
| Point of Control (POC) | 12927 |
| Value Area High (VAH) | 12939 |
| Value Area Low (VAL) | 12904 |
| The DAX Pivot | 12911 |
| The DAX R2 | 13030 |
| The DAX S2 | 12792 |
| Daily 5 EMA | 12884 |
| Daily 8 EMA | 12861 |
| Daily 50 EMA | 12525 |
| Daily 200 EMA | 12107 |
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Yesterday was a super quiet day in terms of index trading for me. I had a couple of interesting spots, but overall it was a non-event.
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