DAX Market Analysis, July 2021
DAX continued climbing higher during June and ended the month with a gain of +0.8%, which is quite good performance since historically June is not a bullish month. The yearly R1 pivot point at 15662 and also the monthly R1 pivot point was tested and not enough steam was found to get over this resistance level.
DAX continued climbing higher during June and ended the month with a gain of +0.8%, which is quite good performance since historically June is not a bullish month. The yearly R1 pivot point at 15662 and also the monthly R1 pivot point was tested and not enough steam was found to get over this resistance level. The swings and volatility for the upcoming months is likely to be modest and the yearly R1 pivot point at 15662 could very well be the highest level that DAX manages to put in. We continue to expect a test of EMA12 (currently at 15040) as quite probable within the incoming 2-3 months.
Long term levels of support: 14300, 15000
Long term levels of resistance: 15660, 16000
Below on the weekly chart DAX is technically beautifully testing the monthly pivot R1 that triggered a corrective move and then tested again EMA6 which also held again. Note the importance of EMA12.
Medium term levels of resistance: 15780, 16000
Medium term levels of support: 15300, 15430
For the bullish case, the same entry points as last month; the weekly chart with levels EMA6 and EMA12. For this trade, several options are available depending on risk appetite. One example could be:
For the bearish case, a good entry point could be the monthly R1 pivot at 15777 and also the monthly pivot at 15545 could be a possible entry point.
US investor sentiment continues in a bullish direction.
Historically July has been slightly positive for the DAX index
Above: McClellan oscillator is back in bullish mode.
Above: Split of stocks in DAX index that are above or below their respective DMA20 averages. This indicator is not close to as bullish as the other indicators.
Above: Summary of technical indicators of stocks in DAX index. We are again in buy mode.
Above: DAX historical weekly and daily changes
Above: World’s main futures continue in strong buy yet again.
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