Perhaps 13,300 is too ambitious for the DAX? We’ve made a number of attempts at breaking higher, some attempts actually pierced the level; but resistance is a zone and not a specific price point. We can clearly see some resistance here. So far, the German benchmark index has weathered the historically difficult month of September well. But there are increasing signs of weaker prices soon, so we should probably be cautious going forward.
Most traders are on the lookout for signs of whether the economic recovery will continue or lose momentum in view of the corona-positive tests that have recently increased again. So in that case, pay particular attention to the ZEW index, which is presented later this morning. Experts assume that the barometer fell slightly again in September. However, the current situation should be assessed better than in August.
DAX 30 Review From Last Session
During the last session, we saw the DAX 30 find a session high of 13340 and a session low of 13143 giving us a range of 197 points compared to the average daily range of 279. At the close of play last session, the market closed at 13170 which was 889 points above the 200EMA and 340 points above the 50EMA.
DAX Trading Strategy
This image shows the DTI trading strategy (that you can learn more about on the ‘Dax Trading Strategy’ page) for yesterday’s session and i’ve included the notes. This strategy starts trading around 9am. Notice that the strategy offered a couple of signals very early? I didn’t take any of those because I missed them, but congratulations to those that did! The rest of the signals we ignored until the afternoon because the market has pierced the deviation low (the lower band). Once the deviation low is pierced, I want to see the market retrace up to vwap (the middle band). In the afternoon session I actually took a trade without retracing back up to vwap – this was not a valid setup, so I made a mistake. Luckily for me, no capital was lost; the trade closed out at breakeven.
This is just one of the strategies. I use it for FTSE too and there is another main strategy I use to provide more signals.
Where Is The DAX Heading?
The DAX is still currently Bullish, but the market is looking more choppy and more ‘sideways’.
The DAX still shows a progressive series of higher highs and higher lows. The trend defining level in the short term is currently 13095, so the market remains bullish above that level. In order for the market to remain bullish, we need to take out 13319. I will again be looking to use the DAX trading strategy to provide some useful setups today
DAX Index Key Levels
Moving over to the key levels to watch today, watch out for the previous session Point of Control (POC) at 13185 and the previous session Volume Weighted Average Price (VWAP) at 13204. The value area high (VAH) is currently 13212 and the value area low (VAL) is currently 13165.
DAX Technical Indicators
| Indicator | Value |
|---|---|
| RSI | 54 |
| Stochastic | K: 57 and D: 59 |
| MACD OSMA | -1 |
| Point of Control (POC) | 13185 |
| Value Area High (VAH) | 13212 |
| Value Area Low (VAL) | 13165 |
| The DAX Pivot | 13218 |
| The DAX R2 | 13414 |
| The DAX S2 | 13021 |
| Daily 5 EMA | 13147 |
| Daily 8 EMA | 13129 |
| Daily 50 EMA | 12830 |
| Daily 200 EMA | 12281 |
