Good morning traders, it’s Thursday the 13th of August and time for today’s 13-8-2020 German DAX 30 analysis. After a strong rally yesterday, trades are asking “what is the retracement target today?” One way you can find that is to plot the three most recent swings (let’s call them A, B and C) and then plot a line from A through the middle of B and C. Like the chart below.
DAX 30 Review From Last Session
During the last session, we saw the DAX 30 hit a session high of 13103 and a session low of 12827 giving us a range of 276 points compared to the average daily range of 253. At the close of play last session, the market closed at 13080 which was 996 points above the 200EMA and 598 points above the 50EMA. It was a strong trending day yesterday with price starting below the value area of the previous day, then consistently rallying all the way up to the previous point of control. The POC is often a magnet for price and price will often find ‘fair value’ there which means the market is happy doing business at that level. So price slowed down around that zone until the afternoon, where the rally continued, all the way through the value area high and closed towards the highs.
DAX 30 Index 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 12809, so the market remains bullish above that level. In order for the market to remain bullish, we need to take out 13104. 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. See the chart below for how to work out the DAX RETRACEMENT TARGET.
DAX 30 Levels To Watch
As for the key levels to watch today, watch out for the previous session Point of Control (POC) at 12925 and the previous session Volume Weighted Average Price (VWAP) at 12976. The value area high (VAH) is currently 13042 and the value area low (VAL) is currently 12822.
|Stochastic||K: 92 and D: 88|
|Point of Control (POC)||12925|
|Value Area High (VAH)||13042|
|Value Area Low (VAL)||12822|
|The DAX Pivot||13004|
|The DAX R2||13279|
|The DAX S2||12728|
|Daily 5 EMA||12913|
|Daily 8 EMA||12851|
|Daily 50 EMA||12482|
|Daily 200 EMA||12084|
To keep up with the economic calendar and the latest price action, click this link to open up the DAX chart. Here are the most important announcements for today. Watch out for the Germany Whole Price Index. The wholesale price Index released by the Statistisches Bundesamt Deutschland shows the value of sales made by wholesalers in Germany. A growing number in wholesales indicates increases in retail trade and consumption, that is seen as positive or bullish for the EUR, while a declining number indicates the weakened retail sectors, consumption, and the economy in Germany, that is seen as negative or bearish for the currency.
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DAX Trading Signals
As for my index trading; during the last trading session, I took a total of 3 trades (1 DAX trade and 2 FTSE trades). Breaking down my DAX trade, 0 were from the DAX trading strategy (DTI) and 1 was 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, 1 loser, and 1 break-even trade. This gave me a total profit of 9.2% for the day, which is a fantastic day.
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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