Category Archives: DAX

Elliott Wave Analysis On GOLD And German DAX

Gregor Horvat

On the 1H chart of GOLD we are observing a five wave impulse from July lows taking place, with price now trading in a possible correction in blue wave iv. That said we know that after every five wave movement a minimum three wave contra-trend action follows, meaning a little more weakness could come in play. Ideally GOLD will find support around the 38.20 and 50.0 Fibonacci ratio and continue higher. Invalidation level is at 1324- as long as it holds we are looking bullish.  more…

DAX: Make Or Break Time

Fawad Razaqzada

The German DAX index, pressurised by heavy falls in German bank shares, has now ‘filled’ one of its previously unfilled gaps at around 9770. This level also roughly corresponds with the 38.2% Fibonacci retracement of the upswing from this year’s low of 8700. If the DAX manages to find significant support at this relatively shallow retracement level then it would bode well for the bulls as it would strongly suggest that they rather than the bears are still in control. But for the bullish trend to have any chance of resuming soon, the index will need to break above Thursday’s high at around 9920, a level which also corresponds with the 50-day moving average and the backside of the support trend of the bullish channel. A potential break above it would therefore re-establish the bullish channel. more…

German DAX Could Be In A Reversal Into Higher Levels

Gregor Horvat

German DAX has been trading south for the last few weeks but it can be only a temporary weakness if we consider that big trend is up after a three wave drop from April high to September low at 9300. We labeled this as big zigzag that represents A of a complex correction, while bounce to 11418 was wave B. As such, move down from 11411 was wave C as part of a flat correction that can be finished with recent leg up to 9600. That said, be aware of more gains ahead. more…

German DAX : Bullish Reversal May Be In Play

Gregor Horvat

German DAX has been trading south for the last few weeks but it can be only a temporary weakness if we consider that big trend is up after a three wave drop from April high to September low at 9300. We labeled this as big zigzag that represents A of a complex correction, while bounce to 11418 was wave B. As such, move down from 11411 was wave C as part of a flat correction that can be finished with recent leg up to 9600. That said, be aware of more gains ahead. more…

DAX: More Weakness Or Rebound In February?

Fawad Razaqzada

The impact of the Bank of Japan’s surprise move to cut interest rates into the negative was swift overnight as the Nikkei led a global stock market rally. This ensured that at least in Japan, stocks would close significantly off the recent lows. But this has nevertheless been the worst ever start to a year for global stocks. Money managers may therefore decide to significantly reduce their equity holdings as they rebalance their portfolios ahead of the new month. They don’t want to be stuck with equities should they fall further in February. So, the last trading day of this month may end how it began: lower. Added to this, the impact of Amazon’s big drop following its earnings release may deter US investors from buying the so-called “FANGs” group of stocks which was largely the reason why US indices did not fall significantly in 2015. more…

DAX Surges On Speculation ECB Will Surprise Next Week

Fawad Razaqzada

It might be a data-void session and investors in the US are away for Thanksgiving holiday, but European stocks are again in a rally mode, following on from yesterday’s strong gains. Evidently, traders are speculating that a beefed-up version of ECB QE is forthcoming in a week’s time, so they are buying benchmark government bonds, causing yields to fall further into the negative. more…

Stocks: Banks Lead European Market Bounce; Earnings In Focus

Fawad Razaqzada

European stock markets have turned higher, led by banks, although HSBC’s disappointing earnings results and the underperforming mining stocks were still keeping the UK’s FTSE 100 in the negative territory as went to press. Nevertheless, investors don’t seem to be too concerned about China after the latest manufacturing PMI data there failed to provide any positive or nasty surprises. more…