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DAX Weekly analyses, Aug 3, 2019

Updated: Sep 26, 2019

Instead of weekly video

Weekly, daily and 240 min charts of DAX futures, DAX cash index and DAX CFD

Market disappointed by ECB / Draghi Press Conference, then FOMC Statement and Powell Press Conference, then Trump tweeting about more tariffs... Al that comes when SPX is at ATHs. Corrections does not starts out of the blue, on "high valuations" and "overbought conditions". Usual requirement besides that is a fundamental push, a news catalyst. Well, we got now several of them, and German DAX is weaker market, that has been lagging behind SPX for years. I will show you now 5 charts of DAX.

No. 1 DAX Futures Weekly chart

Notice trendline break, weekly close near the bottom, and RSI bearish divergence. ATH on DAX was a false break above previous ATH, and it came with both RSI and MACD divergence.

No. 2 DAX CFD Daily chart

Clear trendline break, levels below and above.

No. 3 DAX CFD Daily chart with DMA50 and DMA200

DMA50 as we can clearly see, was acting as dynamic support or resistance several times, and that is why losing it is important, and that COULD lead to test of DMA200 which is below, and it was also served as both support and resistance before.

Obvious next level of support is 11,600.

No. 4 DAX CFD 240 min chart - bear flags and Fibonacci retrace

Note the start of downside from position of lower high. Friday low on last Fib retrace, 0.78.

No. 5 - FINAL CHART - DAX Cash Index Daily Chart

Trendline break, unfilled gaps... and BREAKAWAY GAP.

Conclusion: High odd scenario is more downside.

Prepare yourself for downside scenario, and learn more about false breakouts (upthrusts) – since breakout attempts tend to fail in bearish environment. Embrace the higher volatility – it brings more opportunities.

HAGW, StrayDog.


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