DAX Weekly Plan: Sunday DAX Analysis for Traders Jul 10, 2022.


DAX extends recovery

After we managed to break free from the new low of the year on Wednesday and Thursday, Friday also started well and managed to hit 13,000 points by noon. The index not only returned to a psychologically important value, but also closed another gap from the end of June with positive results. This is exactly what we put together as the Friday Morning Resistance Area (overview):

20220707 Weekly Xetra DAX course Resistance

The dynamics of the last few trading days was continued thanks to Friday’s labor market data, which only temporarily sobered the mood. Because they were very strong and fueled fears of further interest rate hikes before the opening of Wall Street. However, the consensus in US trade was that a strong economy is worth more than low interest rates.

The DAX ignored the Friday gap and ended the week almost exactly at the daily high and just above the 13,000 mark:

20 220 710 DAX Xetra short-term

Profit was thus saved in a temporary weekly downside which, however, seemed small in direct comparison to the Nasdaq. In the weekly ranking, the index ended up in the bottom third:

20 220 710 weekly indexes ranking

As the chart below shows, the gap to the minimum for the year on Tuesday could be widened to 600 points or 5 percent:

20220710 DAX weekly course with a perpetual contract

How does this outline the overall picture?

Big picture in DAX and other purposes

In the big picture, it was now possible to speculate about the formation of the seabed. Even if the lows are not at the same level, the distance at least indicates that many market participants are regaining confidence in Dax:

20220710 DAX large image

The June downtrend line that we’ve been showing here again and again for the past two weeks has now completely broken (overview):

20220706 Xetra-DAX monthly trend
20220706 Xetra-DAX monthly trend

To look at further signals it is worth looking up where there are further gaps. After closing at 13,003, there would be around 1 percent left to the next price gap, at the brink of which we even expect a medium-term downtrend:

20 220 710 DAX Xetra monthly course

As a positive scenario, I believe that a continuation of this trend is possible, but I would consider the short option directly. Likewise, if the index were to revert directly to below 13,000, it is very likely to bear down to 12,860 as Friday’s retracement area is very likely.

In tomorrow’s pre-market period, we can already see the first trend and then show it in the movie. You will receive this information in the form of a daily check-in at this point:

I also invite you to follow the course of trading and trading live with me and other traders on Germany’s first HD financial stream channel – the Twitch FIT4FINANZEN channel. Conveniently via the home page or app:

FIT4FINANZEN Twitch on the home page
FIT4FINANZEN Twitch on the home page

Nominations for the new week

In addition to the daily live stream on Twitch from 8.30am, there are also excerpts on my YouTube channel as well as a fully interactive video review upon completion. I am very happy with the follow and I will be there LIVE around 8:00 am:

YouTube teaser channel Andreas Bernstein

There are also dates from the economic calendar.

Monday is relatively calm, but the ZEW index appears on Tuesday at 11:00 CET. It shows economic expectations for Germany and Europe.

On Wednesday we will focus on consumer prices. First in the morning to Germany, and in the afternoon to the USA. The evening is already underway, according to the US Federal Reserve’s Beige Book.

On Thursday, important data include wholesale prices from Germany and the US producer price index.

Along with University of Michigan consumer confidence and America’s imports and exports, we have more economic data on Friday.

That’s it for a big and quick overview of the new week dates, which are shown in more detail here in the calendar:

20 220 710 business dates 1
20 220 710 business dates 2

Consequently, I wish us a lot of success at the beginning of trading and would be happy if you would use other formats.

Here is an analysis video:

Regards, Andreas Bernstein

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