Morning DAX analysis: DAX start below 14600: The holiday effect has expired


Video with morning analysis:

This beginning of the week was as dynamic as the beginning of the week. Remembrance Day was still anchored in the US as a public holiday, and therefore lacking momentum in the calendar. This time Green Monday, which was also a public holiday, but was not omitted on the stock exchange.

Yesterday there was a trade rather, and therefore also important odds in the DAX that we need to evaluate. First of all, the week started vigorously with a new price gap and moved towards 14,600 in the morning. It has been known to us as resistance for several weeks and has already shown its effect four times on the medium-term chart (weekend analysis):

20220605 Xetra-DAX medium term

20220605 Xetra-DAX medium term

The index was driven by the end of the corona blockade in the metropolises of Shanghai and Beijing, which could then lead to a rapid recovery in the global economy. After all, much of the supply chains are anchored there.

We got to that level by noon, and yesterday we broke it directly with a low volume. There was a buy signal that technically raised the index to 14,700 and thus generated new multi-month highs. This limit was even exceeded at the closing price as seen on the Frankfurt Stock Exchange:

20220606 Xetra-DAX Frankfurt Stock Exchange

20220606 Xetra-DAX Frankfurt Stock Exchange

Almost all stocks were positive, even in the secondary market in the evening:

20220606 DAX stock heat map

20220606 DAX stock heat map

A positive trading day, without any evaluation at this point, I present here in large format:

20220606 Start of the Xetra-DAX week

20220606 Start of the Xetra-DAX week

This gave an overall positive signal which is now reflected in the mid-term chart with a new high:

20220606 Xetra DAX 4 weeks

20220606 Xetra DAX 4 weeks

The question remains, however, whether this was a holiday effect at low volume or whether the trend reached a new level.

It would not be surprising if this “holiday” was revised again. We’ve already seen Wall Street and Nasdaq return from the intermediate levels. The first effect after the Amazon split faded out again in the course of the trade:

Amazon on a share split on June 6, 2022.

Amazon on a share split on June 6, 2022.

The aftermarket has come back a bit as well and shows a bit lower in today’s pre-order market. 14,600 fell below and almost at the same level as yesterday morning was again hit:

20220607 Advance DAX

20220607 Pre-sale DAX

In the medium term, the trend in the Perpetual Contract continues to rise, but there will be an aftertaste if the buy signal (even if it was at a small volume) does not persistently exceed 14,600:

20220607 DAX perpetual agreement

20220607 DAX perpetual agreement

Specifically, I look at 14,600 as resistance this morning as if it hasn’t been broken yet, and at yesterday’s morning gap that starts at 14,548 points.

by the way: I will send you these graphics as a preparation for trading every morning by e-mail – if you signed up.

You will receive your detailed market expectations every day in the form of an e-mail to your e-mail inbox.

Also this week, the live trading room will be open as usual from 10.00 am – today only because of me, because beloved Marcus is enjoying an extra day of Pentecost. Click on this link to register:

Trade room for trade on JFD

The content also includes stocks that show volatility in, for example, quarterly numbers. Today we focus on:

20 220 607 Earnings

20 220 607 Earnings

From the economic calendar, factory orders from Germany are exciting at the start of trading, followed by the confidence of EU Sentix investors at 10.30am.

In the afternoon, we’ll look at the US trade balance, sales at the Redbook Department Store, and then consumer credit.

Here you can see the key figures listed along with their corresponding expectations as part of the economic calendar:

2022-06-07 economic data

2022-06-07 economic data

I wish us every success in the beginning of trading and would be happy if you would fall into my other formats. If you missed something:

  • Morning analysis before starting trading
  • Live broadcast recordings
  • Daily stock market presentations
  • interviews

You can find it here on my channel:

20220527_Teaser_YouTube

Regards, Andreas Bernstein

Your invitation to a trading community of approximately 1,400 traders

*The placed products / tools are properly marked and advertised. 72.99% of retail investor accounts lose money when trading CFDs with the company. Therefore, you should consider whether you understand how CFDs work and whether you can afford the high risk of losing your money!

Leave a Comment