DAX Market Analysis, June 2021

DAX Market Analysis, June 2021

11. juni 2021Læsetid: 2 minutter

May was a bullish month for the DAX index and ended at a +1,8% gain for the month. The shooting star candlestick formation for April, which suggested selling pressure ahead, is now invalid. DAX tried to start pullbacks at several points but the monthly EMA12 level held and all pullback attempts were bought by the bulls. Speculations about inflation and rising interest rates tried to shake the markets but the bears lost the battle and May ended with a candlestick that suggest buying pressure.

On the monthly chart, the trend continues to point north. DAX is however somewhat far away from its moving average EMA6 and thus it is quite likely that we will see an EMA6 pullback test within the near term future. Advancing indices during the summer months are rarely seen and the current up trend has been very strong this year.

Long term levels of support:  14800, 14000

Long term levels of resistance:  15600, 16000

Below on the weekly chart we can easily see that DAX did a significant move down each week during May to test the weekly moving average EMA6 which held intact. The weekly EMA6 has been a good support level and entry level for DAX for several months. The mid term trend is still bullish and the monthly pivot point R1 (15720) is an important level if DAX continues to seek higher price levels. For pullbacks, another EMA6 test and below is quite likely since the current bull run has lasted very long.

Medium term levels of resistance: 15720, 16000

Medium term levels of support: 15000, 15160

For the bullish trade, look for an entry near the weekly EMA6 (currently at 15162). For this strategy, there are several options available depending on risk appetite. One option could be:

For the bearish trade a good entry could be at monthly pivot R1 15720 and level 16000 is resistance. As an example would be:

US investor sentiment is now in bearish territory, which was last seen in November 2020. Also the volatility has clearly been rising.

June has historically been somewhat negative for the DAX

Above: McClellan oscillator is back in bullish mode.

Above: Split of stocks in DAX index that are above or below their respective DMA20 averages. The indicator is again above its zero line which is bullish.

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.

Important Notice

This information is neither an investment advice nor an investment or investment strategy recommendation, but advertisement. The complete information on the securities, in particular the structure and risks associated with an investment, are described in the base prospectus, together with any supplements, as well as the final terms. It is recommended that potential investors read these documents before making any investment decision. The documents and the key information document are published on the website of the issuer, Vontobel Financial Products GmbH, Bockenheimer Landstrasse 24, 60323 Frankfurt am Main, Germany, on prospectus.vontobel.com and are available from the issuer free of charge. The approval of the prospectus should not be understood as an endorsement of the securities. The securities are products that are not simple and may be difficult to understand. Past performance is not a reliable indicator of future performance.

08-12-2021 17:39:29

 

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