DAX – Correction overdueShort analysis on the DAX in the context of the cyclical calculation
On further rising prices is to be counted on the German leading index only with very much imagination. On the contrary! According to our calculations, a price decline of several weeks must necessarily be included.
We strongly advise against any long positions in the current environment. We see the probability of a further rise with a good risk-reward ratio only far in March.
Our subscribers will receive the coming low (exact turning date and probability of hit) as usual via our distribution list.
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Germany30
New Week, New OpportunitiesHere's our overview on the DE30 for the upcoming days. As always we say, never trade equities without following the news.
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This analysis is for educational purpose and not to be used on real accounts.
DAX on the way to a reversalThe German leading index DAX seems to be getting more and more stuck in the area around 14,000 points. Should there therefore be another upward impulse before the imminent reversal date on 19 February, this would be an interesting opportunity to start a possible short exposure. Looking at the end of the month, a downward trend towards 13,800 points is more likely. In the event of a possible correction, one should even have levels in the area of 13,400 points on the agenda. There, the index looks well protected for the time being, so that short covering could occur. These in turn should lead to rising prices.
If, contrary to expectations, the DAX is able to establish itself above the 14,000-point mark, the level of 14,500 points remains in the sights of market participants. Above this level, the level of 14,800 points would become interesting.
Note:
Three special analysis methods are used within our trading strategy. Only partial aspects have been published in this article and it represents neither a complete trading system nor investment advice or a recommendation to buy.
GERMANY30 another dump coming GERM30 possible re entry lining up after catching a nice sell yesterday, we are now waiting to see how 4hr candle closes market is currently testing previous support as new resistance we also have the confluence of resistance with the downtrend and we still haven't completed the daily W pattern so still room to fall, waiting for market to show us some valid entries.
GER30 (DAX)As described in my last analysis, the Dax has reached with the last high at 14137 only the minimum target, in the form of the 0.618 extension, of the yellow circled z. In all other waves, the mandatory targets have already been reached. However, there is still potential to the upside. So far, only the 0.618 extension has been reached in the pink (z). The next level the 0.786 extension is at 14204. In the drawn alternative, we would have with the high at 14137 only the green Alt. (w) of the yellow circled z completed and with the Friday low the green Alt. (x) finished. Should the market still aim for a new high from here, the ideal target here would be at 14235. In the vicinity of which also lies the mentioned 0.786 of the pink (z). From therefore a quite attractive target, which I like in principle much better than the current all-time high. What speaks against it, however, is that the market has run in late Friday trading again towards the low instead of clearly break away from it.
A decision will probably be made early in the next trading week. Ultimately, the DAX is very likely to suffer significant losses soon and a new high, would only delay this by a few days.
GER30 (DAX) long term analysisWe see here the Dax since the 1970's. At the beginnig we have a clear 5 wave impulsiv structure. At the beginning of the new Millenium this structure change to a corrective one. But at this time I could count it also as an impuls. The clearest indication for a corrective structe is the Wave from 09/2011 to 05/2014. I do my best to count this wave as an impuls but it was not possible. Nevertheless the market rise in this time. The only logical interpretation was for me that the Dax is from it's beginning in a corrective structure. The most important question now is whether the coronalow is already the connecting X to the next rising wxy (38.2 RT was hit) or whether the market has just completed a W and we can still expect a Y, which brings a new low.
Dax30 run out of fuelAs with all indices, since US election, Dax had a good run-up of 2000 point or almost 20%.
Now the index looks like running out of fuel and a drop to 12500 is possible.
I don't rule out a spike up towards 14k, but this in my opinion will be short-lived and can be used as a good entry point for sellers
Trading The STOXX600 & GER30 Vs Manufacturing PMI DataIn this video, we take a look at how Manufacturing PMI data in Europe and Germany is used by the investment community to know when to buy or sell stocks with the European region.
This economic indicator is a powerful tool we can use to a clear idea as to the expected performance of the German 30 index and STOXX600 Index.
Manufacturing PMI data is available on investing.com on the first week of each month.
DAX30 Short Idea DAX30 shorting idea fiboretreacement. Please consider your own Levels risk. Good Luck
DE30germany market hows looking like my analysis.. big sell but long time. if corona virus effect then chart may can go like my analysis..