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DE 30 Technical Analysis - DE 30 Trading: 2020-04-30
DAX Index Technical Analysis Summary
Above 11151.39
Buy Stop
Below 10217.66
Stop Loss
| Indicator | Signal |
| MACD | Buy |
| Stochastic | Neutral |
| Donchian Channel | Buy |
| MA(50) | Buy |
| Fractals | Buy |
| Parabolic SAR | Buy |
DAX Index Chart Analysis
DAX Index Technical Analysis
On the daily timeframe DE30: D1 has breached above the 50-day moving average MA(50) which is falling. We believe the bullish momentum will continue after the price breaches above the upper Donchian boundary at 11151.39. This level can be used as an entry point for placing a pending order to buy. The stop loss can be placed below 10217.66. After placing the pending order the stop loss is to be moved every day to the next fractal low, following Parabolic signals. Thus, we are changing the expected profit/loss ratio to the breakeven point. If the price meets the stop-loss level (10217.66) without reaching the order (11151.39) we recommend cancelling the order: the market sustains internal changes which were not taken into account.
Fundamental Analysis of Indices - DAX Index
Germany’s consumer and business confidence deteriorated while inflation decline was not as steep as forecast. Will the DE30 rebound continue?
Germany’s economic data in the last couple of weeks painted a grim picture: consumer confidence plunged, contraction in private sector continued and business confidence deteriorated. Thus, the GfK consumer confidence index sank to negative 23.4 for May from 2.3 the previous month. Contraction accelerated in both German manufacturing and services sectors as evidenced by drops in Markit’s Manufacturing and Services PMIs for April, and Ifo Business Climate Index hit the lowest on record in April. At the same time the decline in annual inflation was smaller than expected: the inflation rate declined to 0.8% over year in April from 1.4% in March, when a drop to 0.6% was forecast. Weak German data are a downside risk for DE30. However German government announced two stimulus programs to aid its economy. On March 25 Germany passed a law establishing a program to lend out as much as $610 billion to companies to cushion the effects of the coronavirus. At the same time budget spending was increased by $172 billion. Against the background of countries gradually easing shutdowns similar fiscal and monetary stimulus programs of major economies boosted investor confidence which was translated into a rebound in stock markets. Recovering risk appetite is bullish for DE30.
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