Wage compensation continues in Germany. The German government has agreed to extend its wage compensation scheme to the end of 2021. The compensation scheme was intended to last 12 months, but given the negative effects from Covid, the government agreed to extend it in order to prevent mass layoffs. This is an admission that without the additional fiscal subsidy, the economy will tank. So our speculation was correct. This allows for further bullish momentum.
DAX Analysis From Last Session
During the last session, we saw the DAX 30 tag a session high of 13225 and a session low of 13011 giving us a range of 214 points compared to the average daily range of 215. At the close of play last session, the market closed at 13095 which was 937 points above the 200EMA and 472 points above the 50EMA.
DAX 30 Outlook
The DAX is currently Bullish.
The German stock market index is currently showing a progressive series of higher highs and higher lows. The trend defining level is currently 12629, so the market remains bullish above that level. In order for the market to remain bullish, we need to take out 13225. I will again be looking to use the DAX trading strategy to provide some useful setups today.
DAX 30 Key Levels
Moving on to the key levels to watch today, watch out for the previous session Point of Control (POC) at 13153 and the previous session Volume Weighted Average Price (VWAP) at 13129. The value area high (VAH) is currently 13185 and the value area low (VAL) is currently 13082.
|Stochastic||K: 79 and D: 83|
|Point of Control (POC)||13153|
|Value Area High (VAH)||13185|
|Value Area Low (VAL)||13082|
|The DAX Pivot||13110|
|The DAX R2||13324|
|The DAX S2||12896|
|Daily 5 EMA||13024|
|Daily 8 EMA||12982|
|Daily 50 EMA||12623|
|Daily 200 EMA||12158|
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As for my dax trading signals and my personal index trading; during the last trading session I took a total of 6 trades (4 DAX trades and 2 FTSE trades). Breaking down my DAX trades, 2 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 2 winners, 3 losers, and 0 break-even trades. This gave me a total profit of 10.6% for the day (including a trade I closed around 8pm).
To keep a track of the trading results, you can read the dax trading spreadsheet. In order to get access to the signals and to the strategy, you will need to be a member of the site. Find out more about membership.
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