DAX Market Analysis, July 2021

DAX Market Analysis, July 2021

09 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. 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.

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.

28/07/2021 09:47:43

 

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