Most traders are probably scanning the charts just wondering when a recovery is going to happen. We’ve seen some crazy market action recently, with high volatility and huge movements. However, perhaps we are seeing a recovery emerging in the German stock market at the beginning of the sixth week of the Corona crash, despite the worsening of the crisis.
In the past five trading days, the Dax had posted a weekly gain for the first time since the start of the Corona crash on February 24. Although, we’re still 30% down overall and nerves remain high.
So is now the time to buy? Well, I’m watching for a new trend. We need to see a continued series of higher highs and higher lows. That’s really the only way to measure a trend. A new trend also tends to happen after a period of consolidation. So should the market begin/continue to consolidate, then it’s always possible we see the re-emergence of some bullish sentiment in the markets.
DAX 30 Review From Last Session
During the last session, we saw the DAX 30 hit a session high of 10054 and a session low of 9530 giving us a range of just 524 points. When you compare that to the average daily range of 758, you can see we were 234 points below the average suggesting a slower session although still massively higher than its traditional average. In summary, after considering the previous day’s price action, it’s apparent we had a bearish session that ended up 511 points lower on the day.
DAX Key Levels
Moving on to the key levels to watch today, watch out for the previous session Point of Control (POC) at 9653. Today’s initial balance is between 9433 and 9734, so watch for a momentum break of either of those two levels. The value area high is currently 9722 and the value area low is currently 9538.Here are some more levels to watch out for:
- The 5 EMA (Daily): 9574
- The 8 EMA (Daily): 9526
- The 50 EMA (Daily): 11285
- The 200 EMA (Daily): 12220
DAX Technical Indicators
| Indicator | Value |
|---|---|
| RSI | 40 |
| Stochastic | K: 75 and D: 81 |
| MACD OSMA | -484 |
| Point of Control (POC) | 9653 |
| Value Area High (VAH) | 9722 |
| Value Area Low (VAL) | 9538 |
| The DAX Pivot | 9704 |
| The DAX R2 | 10228 |
| The DAX S2 | 9180 |
DAX Trading Strategy
Remember, you can get a copy of the DAX trading strategy for yourself. All you need to do is get Sierra Chart installed on your machine. If you need a reminder of how to do that, visit the dax trading strategy page.
To keep up with the economic calendar and the latest price action, click this link to open up the DAX chart.
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