Our daily assessment of the DAX
Table of Contents
Table of Contents
- 1 Our daily assessment of the DAX
- 2 DAX Chart Check – View in the daily chart:
- 3 FTSE which country Stock Exchange
The DAX started pre-market trading on Friday morning at 18,602 points. The index initially fell dynamically when Xetra trading began, stabilized and was able to show a moderate upward movement by the afternoon. The day’s high in the afternoon was formatted as part of a dynamic impulse movement. This high was then immediately sold off again. It continued to decline dynamically until the evening. It was only in the evening that the DAX was able to stabilize in the vicinity of the 18,300 point mark. The bulls had no chance on Friday. Another Xetra daily loss was formatted, the fourth this week. After-market trading, the index stabilized but was unable to recover significantly. The DAX fell at 18.290 Points from day trading.
This morning the DAX is at 18.371 points. It is thus 231 points below the first pre-market quotation on Friday morning but 81 points above the daily week-end closing price on Friday evening.
► DAX WKN (Kassa): 846900 | ISIN (Kassa): DE0008469008 | Ticker: DAX
DAX Chart Check – View in the daily chart:
The daily chart shows that the DAX has established itself above the SMA50 (currently at 18,419 points), was able to set a new ATH in the last trading week, but was unable to continue to implement the good guidelines. The real punch came on Friday of the last trading week. The index was passed below the SMA20 (currently at 18,546 points) and then below the SMA50. There was little or no resistance from the bulls.
With the move below the SMA50, the daily chart has become cloudy again. As long as the index does not manage to push itself back above these two average lines at the end of the day and subsequently establish itself, there is a probability that the weakness could continue. A conceivable target on the downside could be 18,190/85 points, 18,110/95 points and, above all, the SMA200 (currently at 17,900 points)…
– Act responsibly –
Every trade also involves risk. CFDs are leveraged products and are not suitable for everyone! The leverage multiplies your profits if your trading decision was correct, but also your losses if your market assessment was incorrect. CFDs are complex instruments and, due to the leverage, come with a high risk of losing money quickly. 76% of retail clients lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. The authors may be fully or partially invested in the securities discussed. This content does not constitute financial analysis: it is an advertising communication that does not meet all legal requirements to ensure the impartiality of financial analyses and is not subject to a trading ban prior to the publication of the analyses.
FTSE which country Stock Exchange
Our Daily Assessment of the DAX
The DAX, Germany’s primary stock market index, has experienced a tumultuous week, with the index falling dynamically on Friday morning before stabilizing in the evening. In this article, we’ll provide a comprehensive analysis of the DAX’s performance, including its historical context, current chart trends, and guidance for investors.
Historical Context
The DAX has a rich history, dating back to 1988. According to Curvo.eu, in the last 49 years, the DAX index (in EUR) has had a compound annual growth rate of 7.81%, a standard deviation of 19.38%, and a Sharpe ratio of 0.44[[[[[[[[1]. This provides a valuable perspective on the index’s long-term performance and volatility.
Current Market Trends
As of Friday morning, the DAX started pre-market trading at 18,602 points, only to fall dynamically during Xetra trading. The index stabilized in the afternoon, showing a moderate upward movement, but ultimately sold off again, continuing to decline dynamically until the evening. The DAX eventually stabilized in the vicinity of the 18,300 point mark, with the bulls having no chance on Friday. This marked the fourth daily loss of the week.
In the aftermath of Friday’s trading, the DAX has stabilized but has been unable to recover significantly. As of this morning, the DAX stands at 18,371 points, 231 points below the first pre-market quotation on Friday morning but 81 points above the daily weekend closing price on Friday evening.
DAX Chart Check
The daily chart reveals that the DAX has established itself above the SMA50 (currently at 18,419 points), achieved a new all-time high in the last trading week, but was unable to continue its upward momentum. The real test came on Friday of the last trading week, when the index broke below the SMA20 (currently at 18,546 points) and then below the SMA50, with little resistance from the bulls.
With the move below the SMA50, the daily chart has become cloudy again. As long as the index does not manage to push itself back above these two average lines at the end of the day and subsequently establish itself, there is a probability that the weakness could continue. A conceivable target on the downside could be 18,190/85 points, 18,110/95 points, and, above all, the SMA200 (currently at 17,900 points).
Investor Guidance
Investors should exercise caution when trading CFDs, which are leveraged products and not suitable for everyone. The leverage multiplies profits if the trading decision is correct, but also losses if the market assessment is incorrect. CFDs are complex instruments and, due to the leverage, come with a high risk of losing money quickly. 76% of retail clients lose money when trading CFDs with this provider.
the DAX’s recent performance has been marked by volatility and uncertainty. Investors should carefully consider their trading decisions, taking into account the index’s historical context, current chart trends, and the risks associated with CFDs. By doing so, investors can make informed decisions that align with their investment goals and risk tolerance.
References:
[1] Curvo.eu, “DAX: historical performance from 1975 to 2024”
[2] Dax Studio, “Load Power BI Performance Data”
[3] Yahoo Finance, “DAX PERFORMANCE-INDEX (^GDAXI) Stock Historical Prices”
DAX 40 companies list
Our Daily Assessment of the DAX
The DAX index, a benchmark of the German stock market, has been in the spotlight recently, and our daily assessment provides an in-depth look at its current performance.
Daily Performance
On Friday, the DAX started pre-market trading at 18,602 points, initially falling dynamically when Xetra trading began. However, it stabilized and showed a moderate upward movement by the afternoon, reaching a high of 18,350 points. Unfortunately, this high was short-lived, and the index sold off again, declining dynamically until the evening. It stabilized around the 18,300 point mark, marking the fourth daily loss of the week. After-market trading saw the index stabilize but failed to recover significantly, closing at 18,290 points.
This morning, the DAX stands at 18,371 points, 231 points below Friday’s pre-market quotation but 81 points above the daily weekend closing price.
DAX Chart Check – View in the Daily Chart:
The daily chart provides valuable insights into the DAX’s recent performance. The index has established itself above the Simple Moving Average 50 (SMA50) at 18,419 points, setting a new all-time high in the last trading week. However, it failed to sustain the momentum, and on Friday, the index broke below the SMA20 at 18,546 points and subsequently below the SMA50. This move has made the daily chart look cloudy again.
As long as the DAX fails to push itself back above these two average lines and establish itself, there is a high probability that the weakness could continue. Possible targets on the downside include 18,190/85 points, 18,110/95 points, and the SMA200 at 17,900 points.
Technical Analysis and Forecast
Technical analysis of the DAX chart suggests that the index is currently in a bearish trend, having broken below the SMA50 and SMA20. The RSI (Relative Strength Index) is also indicating an oversold condition, which could lead to a correction in the near term. However, until the index breaks above the SMA50 and establishes itself, the bearish trend is likely to continue.
For a more detailed technical analysis and forecast, please refer to Elliott Wave Forecast, which provides in-depth analysis and charts.
Trading Responsibly
It is essential to remember that every trade involves risk, and CFDs (Contracts for Difference) are complex instruments that come with a high risk of losing money quickly. As stated, 76% of retail clients lose money when trading CFDs with this provider. Therefore, it is crucial to understand how CFDs work and whether you can afford to take the high risk of losing your money.
Before entering any trade, make sure to act responsibly and consider your investment goals, risk tolerance, and market conditions.
Conclusion
our daily assessment of the DAX indicates a bearish trend, with the index breaking below the SMA50 and SMA20. While there are possibilities of a correction in the near term, the trend is likely to continue until the index breaks above the SMA50 and establishes itself. Always trade responsibly and consider your investment goals, risk tolerance, and market conditions before entering any trade.
For more information on the DAX and other markets, please refer to IG Germany 40 and MarketScreener DAX Index technical analysis.
