DAX Index Analysis, Breaking the Resistance

17 авг. 2021 г.

Hello everyone, as we all know the market action discounts everything :)

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The DAX index has lost 0.32% after the close on Monday, The market is having a hard time breaking out of the resistance zone from 16024.90 to 16114.41, as we see on the chart after the price has gone up near the 16030.575 the Bears went in right away and showed the Bulls that they still have power in them and a Bearish candle has formed dropping the price to the 15850.270.

upcoming Scenarios for the price movement :

Scenario 1 :

The DAX index is trading at 15925.730 and it's nearing the first resistance line at 16024.90, where the Bulls power will be tested and if they have proven that they still hold control over the trend then we will see a breakout from that resistance zone and the price will most likely be moving up and will be headed near the 16436.49 area.

Scenario 2 :

After that Bearish candle, The Bears has shown the Bulls that they still have power in them and they could be making a move soon, The drop in price on Monday was 0.32%, This could be a sign that the Bears are ready to make their move, if the Bears were able to hold control over the Market right now then we will be seeing the price dropping near the first Support line at 15935.39 where a battle between the Bulls and the Bears will take place over control of the market, If the Bears were able to win that battle then we will be seeing the price dropping more and could be headed to the Major support area at 15845.88.

Technical Indicators showing that :

1) The Market Price is above the 5 10 20 50 100 and 200 MA and EMA (Bullish sign)
2) The MACD is above the 0 line showing that the market is in a Bullish state, with a positive crossover between the MACD line and the Signal Line.
3) The STOCH reached The overbought zone with a negative crossover between %K (82.25) and %D (89.52). Which could indicate a small drop in price.
4) The RSI is at 61.48 showing great Strength in the market, With no divergences between the indicator and the market.

Support & Resistance points :
support Resistance
1) 15935.39 1) 16024.90
2) 15774.37 2) 16105.43
3) 15571.29 3) 16233.41

Fundamental point of view :

Germany stocks were lower after the close on Monday, as losses in the Consumer & Cyclical, Transportation & Logistics and Industrials sectors led shares lower.
At the close in Frankfurt, the DAX lost 0.32%, while the MDAX index fell 0.54%, and the TecDAX index lost 0.12%.
The DAX volatility index, which measures the implied volatility of DAX options, was up 12.13% to 18.02.

The best performers of the session on the DAX were E.ON SE (DE:EONGn), which rose 1.39% or 0.150 points to trade at 10.940 at the close. Meanwhile, Linde PLC (DE:LINI) added 1.19% or 3.100 points to end at 264.250 and Merck KGaA (DE:MRCG) was up 0.75% or 1.47 points to 196.40 in late trade.

The worst performers of the session were Volkswagen AG VZO O.N. (DE:VOWG_p), which fell 2.14% or 4.45 points to trade at 203.05 at the close. Henkel & Co KGaA AG Pref (DE:HNKG_p) declined 2.12% or 1.82 points to end at 84.06 and Bayerische Motoren Werke AG (DE:BMWG) was down 1.91% or 1.585 points to 81.495. According to Investing

This is my personal opinion done with technical analysis of the market price and research online from fundamental analysts for The Fundamental point of view, not financial advice.
If you have any questions please ask and have a great day !!

Thank you for reading.