Good morning traders. We see the EU recovery fund negotiation in trouble after the weekend’s frustration summit and the countries are now very divided. The initial idea from the European Commission was to have a €750 billion fund to hand out to member states. But the states are not able to agree on how the money is to be distributed. Some of the frugal states (Austria, Sweden Denmark, Netherlands) want to see loans whereas countries like Spain and France want to see grants. It’s providing very difficult for the group to agree the best way forward. Beneath the service, there are many specific ‘rule of law’ principles that are proving difficult to get past and so the EU Council summit ended yesterday without any final answers on the EU’s response to the current economic crisis. This was expected, but it’s still not great. It’s likely that the frugal countries will accept half of the fund as grants.
20-07-2020 DAX 30 Analysis
Moving back to the DAX analysis, it’s Monday the 20th of July and time for today’s 20-07-2020 German DAX 30 analysis.
DAX 30 Review From Last Session
During the last session, we saw the DAX 30 find a session high of 12969 and a session low of 12859 giving us a range of just 110 points compared to the average daily range of 247. At the close of play last session, the market closed at 12955 which was 1013 points above the 200EMA and 807 points above the 50EMA.
DAX 30 Index 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 12521, so the market remains bullish above that level. In order for the market to remain bullish, we need to take out 12994. 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. We are seeing a retracement from our recent highs and also seeing a potential failure to break above 13,000. I would like to think that this week we see that eventual break.
DAX Levels To Watch
Taking a look at the key levels to watch today, watch out for the previous session Point of Control (POC) at 12904 and the previous session Volume Weighted Average Price (VWAP) at 12910. The value area high (VAH) is currently 12930 and the value area low (VAL) is currently 12892.
|Stochastic||K: 73 and D: 83|
|Point of Control (POC)||12904|
|Value Area High (VAH)||12930|
|Value Area Low (VAL)||12892|
|The DAX Pivot||12928|
|The DAX R2||13037|
|The DAX S2||12818|
|Daily 5 EMA||12840|
|Daily 8 EMA||12785|
|Daily 50 EMA||12148|
|Daily 200 EMA||11942|
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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, 0 were from the DAX trading strategy (DTI) and 2 were from the regular morning DAX signal. Breaking down my FTSE trades, 1 was from the FTSE trading strategy (Using the DAX DTI) and 1 was from the regular morning FTSE signal. Overall, I hit 0 winners, 4 losers, and 0 break-even trades. This gave me a total profit of -4% for the day.
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