DAX Market analysis, December 2019

DAX Market analysis, December 2019

19 December 2019

DAX gained close to +3% in November and managed to close for the first time this year over the Pivot Resistance 1 -level (R1). R1 resistance level which is at 12650 has now turned from a resistance into support. December has historically often been a strong month for the DAX but this year the likely scenario is that we trade range in December. 

DAX longer term trend is still bullish measured with EMA6 and EMA12, and the faster moving average EMA6 is also above EMA12. DAX is getting closer to EMA6 moving average and the probability that DAX tests this level (located at 12770) during December is quite high.

Long term trend support levels: 12500
Long term trend resistance levels: 13550

Below the weekly chart where monthly pivots are plotted. The monthly pivot is at 13170, reistance 1 (R1) at 13420 and support 1 (S1) at 13100. DAX has already tested the pivot point and S1 -level and currently it seems more likely that we could test S2 during December. The moving average EMA6 is still above EMA12, thus the trend still seems bullish based on this measurement.

Mid term resistance levels: 13400, 13650
Mid term support levels: 12900, 12700

The investor sentiment in the USA is on the bullish side but the volatility in the Standard & Poor’s Index (SPX) is rising. The probability that the volatility stays higher, around 3% on a weekly basis, seems probable at the moment.

December has historically been a stong month for the DAX.

The percentage of underlying instruments in the DAX index which are above or below its 20 day moving average (DMA20). This indicator is bearish right now.

McClellan oscillator is currently bearish, putting in lower lows and lower highs. This indicator suggests that we get more volatility during the next 2-3 weeks.

Technical indicators summary of underlying instruments in the DAX index. Long and mid term trend is still up. The short term trend (hourly chart) is flagging sell condition.

DAX historical average weekly moves for December.

DAX underlying instrument performance for the last 30 days.

DAX had a volatility spike intraday 2.12.2019 but after that, volatility got back to normal conditons below 1.5% intraday.

World futures are mostly in buy condition. Only the short term trend (hourly charts) are flagging sell condition.

TecDAX has performed well during the last 30 trading days.

Note: Please note with respect to the information provided above that past performance of a financial instrument is not necessarily indicative of the future performance of that financial instrument.
04/10/2022 05:35:53

 

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