DAX: Push itIt's not a struggle for the German index! The DAX index used all its willpower to find its way up and pushed all the way to climb above the resistance at 13 970 points. We're currently observing an upwards slope that should steadily move into the pink zone between 14 346 - 14 687 points. As soon as the blue wave completes its movement, the trend should turn into a downwards slope heading to the resistance at 13 970 points. If the DAX can't keep its upwards trend going, there's a 35% chance for the trend to cross the support at 13 036 and drop below 11 829 points into the green zone. We'll keep you posted on whether the DAX can keep up with its hard work or if it slams on the brakes.
Germany
DAX Big MA200 hit but needs +14000 to avoid new selloffBig bullish news for DAX yesterday as it hit the 1D MA200 for the first time since February 2nd. Even though it has also broken above the Lower High Resistance of the Bear Market since October 27th, there is one pattern remaining which if repeated, can cause a new selloff.
That is the April Cup pattern which after it failed to break its Resistance, it caused a massive selloff. The level for DAX to beat in order to cancel this is 14000, which just so happens to be near the 0.5 Fibonacci retracement level. Otherwise we can visit the September low again where the 1W MA500 will be waiting. The weekly RSI can offer a fair estimate of what could happen next, bullish above its Higher Highs Resistance and bearish below it.
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InvestMate|DAX Time to fall🇩🇪 DAX Time to fall
🇩🇪 Looking at the last few weeks on the dax, we see quite a bit of unwinding after new lows.
🇩🇪 The dax has already rallied more than 15.40% from its lows
🇩🇪 In my last post where I perfectly predicted the correction that took place last week.
🇩🇪 It was followed by a breakout to new highs but I believe that the correction potential has not yet been fully exhausted.
🇩🇪 It is unusual in a serious long-term downtrend for the price to just keep going higher and higher from a new low.
🇩🇪 Sooner or later a correction comes.
🇩🇪 Is the 13600 level the ideal time for a correction?
🇩🇪 Definitely highly likely in my opinion.
🇩🇪 My assumption is confirmed by the fact that we are in a place where the price has already reversed direction once in the past and that it is one of the more important fibo levels 0.382 of the whole downward wave.
🇩🇪 The correction targets will be 2 levels, one more likely and the other a little less likely
These are the levels 0.382 and 0.5 of the current upward impulse. These are places where the price has found support many times in the past
🇩🇪This is a long-term scenario, I do not even exclude breaking out even higher before the decline.
🚀If you appreciate my work and effort put into this post I encourage you to leave a like and give a follow on my profile.🚀
DAX: Bull flag breakout, or has the high been seen?The DAX is set to open lower, but there are two potential scenarios to monitor; a bullish breakout from a bull flag – or the swing high has already been seen around trend resistance.
The DAX has rallied from the September low in three waves, which could either be part of a new bullish trend or part of a 3-wave retracement. If we look at price action alone, the rally from 12,000 has been strong and a potential bull-flag is forming. Should we see prices break above 13,000 then we’ll assume the bullish trend is set to continue.
But there are two potential flies in the ointment which could scupper such a break higher. The rally has been seen on declining volumes, which suggests the ‘rally’ is corrective and not impulsive. Furthermore, the bull flag remains stuck beneath trend resistance. And given we recently saw a -bar reversal on the four-hour chart within the supposed bull flag, we are on guard for a break beneath yesterday’s low to assume bearish continuation.
DAX Weekly Volatility Forecast 31/10 - 04/11 2022 DAX Weekly Volatility Forecast 31/10 - 04/11 2022
Currently the volatility for this week is around 3.82% , up from expected 2.7% last week.
According to ATR calculation, currently the volatility is located around 50th percentile.
Under this circumstances the expected movement of the candle is :
BEAR : 2.49% from the opening point of the weekly candle
BULL : 1.84% from the opening point of the weekly candle
At the same time, currently there is 20.2% that the movement within this weekly candle is going to
break and close either above or below the next channel:
TOP: 13617
BOT: 12891
Lastly, taking into account the previous weekly high and low there is a :
75% chance that we are going to touch the previous week high
25% chance that we are going to touch the previous week low
Inflation Rate of the G20 countriesThe G20 is made up of the world's 19 largest economies, represented by the finance ministers and heads of central banks, plus the European Union, represented by the European Central Bank and the rotating presidency of the European Council.
This graph shows the inflation of these countries month over month (MoM).
Source:
tradingeconomics.com
InvestMate|DAX Prepare to rally higher🇩🇪 DAX Prepare to rally higher
🇩🇪 Referring to my last post on dax 👇👇👇
🇩🇪 We are in a very interesting place where an upside breakout formation could take place.
🇩🇪After making a correction yesterday. At the opening of the session today, the dax index showed strength and a desire to continue the uptrend.
🇩🇪 If today's breakout occurs, the way is open to the 13500 level, which was determined by the fibo grid of 0.786 of the last downward impulse.
🇩🇪 In this situation the stop order would be below the 0.618 level of the same wave at 13125
🇩🇪 The impulse sequence can look like this as I have drawn on the arrows
🚀If you appreciate my work and effort put into this post I encourage you to leave a like and give a follow on my profile.🚀
Joe Gun2Head Trade - More downside for DAX?Trade Idea: Selling NASDAQ
Reasoning: Bearih pressure likley to continue
Entry Level: 12644
Take Profit Level: 12350
Stop Loss: 12767
Risk/Reward: 2.38:1
Disclaimer – Signal Centre. Please be reminded – you alone are responsible for your trading – both gains and losses. There is a very high degree of risk involved in trading. The technical analysis , like all indicators, strategies, columns, articles and other features accessible on/though this site is for informational purposes only and should not be construed as investment advice by you. Your use of the technical analysis , as would also your use of all mentioned indicators, strategies, columns, articles and all other features, is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness (including suitability) of the information. You should assess the risk of any trade with your financial adviser and make your own independent decision(s) regarding any tradable products which may be the subject matter of the technical analysis or any of the said indicators, strategies, columns, articles and all other features.
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Europe&Japan to perform better than USA from now on, 1-GermanyComparision of "DAX in USD dollars" to "SPX".
I am publishing the same for all (please see my other analysis): Germany, UK, France, Italy, Japan...
I ignore all the fundamentals and just make technical analysis. Fall of EUR&GBP&JPY and their stock market's negative divergence compared to USA (SPX) is about to end, I believe.
Important: This doesn't mean that the equities&indices are going to rise from now on. My analysis only says: Europe&Japan will perform better than USA. Just because they are very cheap.
DAX respecting diagonal supportThis is Germany's stock market index, one of the strongest economies in Europe.
The index consists of the 40 largest companies listed in Frankfurt Stock Exchange.
On the monthly chart we have the red diagonal line, which has been a support since the beginning, as shown in the circles.
We also have the middle yellow line, which has been tested 11 times as a support.
In the times when the line was 'respected', I put the green number.
When the line was broken, I put the red number.
Will it break down this time?
Cyclically, the price reaches the red line in the month of March.
So if this periodicity continues, the price would reach this line in March 2023.
Or if it happens equal to 2011, at least it would come close in September this year.
At least in the short term, the scenario does not seem to be the best, and this is true for all markets.
The monthly MACD is pointing down, which is not a good sign.
But just because something happened in the past doesn't necessarily happen in the future.
This is just a prediction and a question.
DE10HELLO GUYS THIS MY IDEA 💡ABOUT DE10 is nice to see strong volume area....
Where is lot of contract accumulated..
I thing that the Seller from this area will be defend this SHORT position..
and when the price come back to this area, strong SELLER will be push down the market again..
DOWNTREND + Support from the past + Strong volume area is my mainly reason for this short trade..
IF you like my work please like share and follow thanks
TURTLE TRADER 🐢
German Bund yields: secular reversalGerman Bund yields ( DE10Y ) are in the midst of a secular trend reversal after the breakout of both the 200-month moving average and a 40-year descending trend line.
Yields on the 10-year Bund have never gone over the 200-mma mark before.
The next barrier is the psychological threshold of 2%, which coincides with the September 2013 highs and 23.6% of the Fibonacci retracement level (all-time highs of 1981 to all-time lows of 2020).
Breaking above 2% could then see the 3.7-3.8% yield as target (2009 highs and 38.2% Fibonacci).
The ECB's forthcoming interest-rate hikes and Germany's rising inflation trend, which reached 7.9% in August, the highest level since German reunification, can exert substantial upward pressure on Bund yields in the coming months.
In particular, the market may begin factoring in a greater volume of Bund emissions from the German state as a means of financing an expanding deficit caused by energy subsidies. The latest €65bn package is worth more than 3% of the German's GDP.
With the ECB expected to reduce (or completely stop) government bond purchases, the German government would need to find buyers who demand higher yields due to rising interest rates and inflation.
The current real rate of Bunds (the difference between the nominal and inflationary rates) is -6%, which is close to the lowest level ever.
Idea written by Piero Cingari, forex and commodity analyst at Capital.com
High Energy Prices a Threat to German industry 🥨🦝German industry weakens as high energy prices are leaving their mark on production costs.
German industry is clearly suffering from disrupted supply chains on the back of the war in Ukraine, the aftermath of pre-summer lockdowns in China, low water levels in the main rivers and increasingly, higher energy prices. The statistical office released additional data showing that production in the energy-intensive industrial segments declined by more than the broader industry (-1.9% year-on-year). Production in this area has dropped by 6.9% since February 2022.
For Germany’s industrial backbone, small and medium-sized enterprises, higher energy prices look like a ticking time bomb. With ongoing pressure on consumers’ disposable incomes, companies’ pricing power is fading. In this regard, it is remarkable that the government’s third relief package presented on Sunday provided only very limited support for this segment of the economy.
Looking ahead, shrinking order books since the start of the Ukraine war, the well-known supply chain problems (both international and domestic) plus high uncertainty, high energy and commodity prices and potential energy supply disruptions will not make life any easier. Judging from the first macro data for the third quarter, the German economy has not fallen off a cliff at the start of the third quarter but is rather sliding into recession.
One thing that could reverse the course of a major correction could only be the end of the crisis/war in Ukraine. For the time being that scenario is not likely while the new Prime minister in the UK may add to the worries. Will share more thoughts on this in the next coming days.
One Love,
The FXPROFESSOR
Joe Gun2Head Trade - Rout to continue?Trade Idea: Selling DAX
Reasoning: Global indices underpressure
Entry Level: 12673
Take Profit Level: 12396
Stop Loss: 12787
Risk/Reward: 2.43:1
Disclaimer – Signal Centre. Please be reminded – you alone are responsible for your trading – both gains and losses. There is a very high degree of risk involved in trading. The technical analysis , like all indicators, strategies, columns, articles and other features accessible on/though this site is for informational purposes only and should not be construed as investment advice by you. Your use of the technical analysis , as would also your use of all mentioned indicators, strategies, columns, articles and all other features, is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness (including suitability) of the information. You should assess the risk of any trade with your financial adviser and make your own independent decision(s) regarding any tradable products which may be the subject matter of the technical analysis or any of the said indicators, strategies, columns, articles and all other features.
The Price of Freedom: NS2 pipeline cf German base energy pricesThe Nord Stream 2 runs through the Baltic Sea from the St Petersburg region (Russia) to Baltic Coast in north-east Germany. It can transport 55 billion cubic metres of gas per year from Russia to Germany, enough to power 26 million homes for a year. Europe's total consumption of Russian gas per year is approximately 200 billion cubic metres per year, which accounts for about 40% to 50% of Europe's energy consumption.
The Nord Stream 2 pipeline completely bypasses Ukraine. Prior to the war Ukraine was earning approximately $1.2 billion per year in gas transit fees from Russia to the EU through its territory.
Construction of the pipeline began in 2016. In Jan 2019 US ambassador to Germany threatens sanctions on companies participating in Nordstream 2 construction. In December 2019 these sanctions are passed into law. Merkle labels these sanctions when they passed as US interference in EU internal affairs.
July 2020 NY Times article provides a good explanation of the tensions between the USA and Germany over the opening of the Nordstream 2 pipeline : www.nytimes.com
Pipeline construction was completed in September 2021, but Germany did not approve gas to start flowing.
In the same month, NATO and Ukraine conduct joint military exercises. In December 2021 Russia threatens military action in Ukraine.
Things escalated, as we all now know. Shortly after Russia's invasion of Ukraine in late Feb 2022, Germany (finally) suspends the Nordsteram 2 pipeline.
German energy base energy prices per megawatt hour have gone from 50 euro since the announcement of US sanctions on Nordstream 2 in 2019, to 150 euro in September 2021 when Ukraine and Nato conducted joint military exercises, to 300 euro after Germany announces in August in has no plans to open Nordstream 2.
Contract at the time of this writing is at 420 euro, up 8x since the US announced sanctions on Nordstream 2 in Dec 2019.
In April 2022 when it became clear to me that NATO was willing to put its populations under extreme energy duress and significant security duress to retaliate against Russia's invasion of Ukraine, I placed bets on unlisted US defense companies.
In retrospect, having caught up on the history of the Nordstream 2 pipeline conflict, with the US and Ukraine aligned against Russia and Germany caught in the middle, as well as the sheer scale of the EU's dependence on Russian gas, the cleaner bet would have been on German base energy prices.
The 12 month energy contract is actually trading at 1,000 euro. I.e. the 12 month spot / futures basis is telling us that even though prices are up 8x from Dec 2019, this is about to get far far worse.
The question now is how much pain can EU citizens bear before they say enough is enough and cut a deal with Russia. At the moment they are sustaining a huge amount of pain and and still holding up, they have probably surprised Russia (and themselves) with their willingness to bear the pain. However, winter is coming and it's not going to be pretty.
It's possible the EU is willing to (or has no choice but to) completely obliterate its economy to wean itself off from Russian gas rather than cut a deal with Russia. If that's the case we can expect energy prices to remain high, perhaps even pump further
At some point there will be enough incentive though for supply to flow from US, maybe Africa, and arrest the rise in prices.
This may be coupled with US aid to Europe to cover their gas bill as European allies ask for help in continuing the economic war. It would be plausible for big aid to be forthcoming as it would essentially be taxpayer money that would essentially flow to the US energy producers, and so far the tax base in the U.S. seems supportive of continuing the war on Russia.
Signs to look out for are signs that both EU and US electorates are tiring of the cost of waging this war. If these signs emerge as German baseline prices continue to rise, this might be a good time to place a short on energy prices.
Any signs of Germany agreeing to start gas flows through Nordstream 2 might also be a good opportunity to place a short
Of course, energy markets are highly efficient so my main concern with this strategy would be inside information or simply people closer to the national policy movements underway that might signal a fraying of resolve in maintaining the economic war on Russia, at least as it relates to energy.
Joe Gun2Head Trade - More downside for DAX?Trade Idea: Selling DAX
Reasoning: Continuation lower
Entry Level: 13107
Take Profit Level: 12435
Stop Loss: 13230
Risk/Reward: 5.45:1
Disclaimer – Signal Centre. Please be reminded – you alone are responsible for your trading – both gains and losses. There is a very high degree of risk involved in trading. The technical analysis , like all indicators, strategies, columns, articles and other features accessible on/though this site is for informational purposes only and should not be construed as investment advice by you. Your use of the technical analysis , as would also your use of all mentioned indicators, strategies, columns, articles and all other features, is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness (including suitability) of the information. You should assess the risk of any trade with your financial adviser and make your own independent decision(s) regarding any tradable products which may be the subject matter of the technical analysis or any of the said indicators, strategies, columns, articles and all other features.