DAX 40: THE INDEX IS TRYING TO RECOVER AFTER TWO SESSIONS OF SHARP DECLINE
Scenario Timeframe Intraday Recommendation SELL STOP Entry Point 18000.0 Take Profit 17750.0 Stop Loss 18091.9 Key Levels 17650.0, 17750.0, 17908.2, 18000.0, 18091.9, 18200.0, 18300.0, 18400.0
Alternative scenario Recommendation BUY STOP Entry Point 18091.9 Take Profit 18300.0 Stop Loss 18000.0 Key Levels 17650.0, 17750.0, 17908.2, 18000.0, 18091.9, 18200.0, 18300.0, 18400.0
Current trend
During the Asian session, the Frankfurt Stock Exchange DAX 40 index is slightly rising, trying to recover from the sharp decline at the end of last week, and is testing the level of 18065.0 waiting for new drivers.
On Monday, investors will pay attention to the inflation statistics from Italy, ahead of the publication of final data for the EU on Tuesday. According to forecasts, the consumer price index will increase by 0.2% MoM and 0.8% YoY, as before. The estimates for the indicator for the entire region do not suggest changes from the previous 0.2% MoM and 2.6% YoY.
Market participants are trying to assess the next steps of the European Central Bank (ECB) officials regarding monetary policy based on inflation dynamics. However, the officials find it difficult to specify a chart for new interest rate cuts, citing uncertainty regarding consumer price growth. Thus, the French indicator fell from 0.2% to 0.1% MoM and from 2.7% to 2.6% YoY. Today, Germany will publish a monthly report from the German Federal Bank on the prospects for the national economy for the near future, and on Friday – June business activity indices. The service PMI may increase from 54.2 points to 54.4 points, and the manufacturing PMI from 45.4 points to 46.4 points.
Support and resistance
On the daily chart, Bollinger bands are actively declining: the price range is expanding, but not as fast as the “bearish” activity develops. The MACD indicator is declining, keeping a strong sell signal (the histogram is below the signal line). Stochastic is near its lows, indicating that the index may become oversold in the ultra-short term.
Resistance levels: 18091.9, 18200.0, 18300.0, 18400.0.
Support levels: 18000.0, 17908.2, 17750.0, 17650.0.
Trading tips
Short positions may be opened after a breakdown of 18000.0, with the target at 17750.0. Stop loss — 18091.9. Implementation period: 2–3 days.
Long positions may be opened after a rebound from 18000.0 and a breakout of 18091.9, with the target at 18300.0. Stop loss – 18000.0.
| Scenario | |
|---|---|
| Timeframe | Intraday |
| Recommendation | SELL STOP |
| Entry Point | 18000.0 |
| Take Profit | 17750.0 |
| Stop Loss | 18091.9 |
| Key Levels | 17650.0, 17750.0, 17908.2, 18000.0, 18091.9, 18200.0, 18300.0, 18400.0 |
| Alternative scenario | |
|---|---|
| Recommendation | BUY STOP |
| Entry Point | 18091.9 |
| Take Profit | 18300.0 |
| Stop Loss | 18000.0 |
| Key Levels | 17650.0, 17750.0, 17908.2, 18000.0, 18091.9, 18200.0, 18300.0, 18400.0 |
Current trend
During the Asian session, the Frankfurt Stock Exchange DAX 40 index is slightly rising, trying to recover from the sharp decline at the end of last week, and is testing the level of 18065.0 waiting for new drivers.
On Monday, investors will pay attention to the inflation statistics from Italy, ahead of the publication of final data for the EU on Tuesday. According to forecasts, the consumer price index will increase by 0.2% MoM and 0.8% YoY, as before. The estimates for the indicator for the entire region do not suggest changes from the previous 0.2% MoM and 2.6% YoY.
Market participants are trying to assess the next steps of the European Central Bank (ECB) officials regarding monetary policy based on inflation dynamics. However, the officials find it difficult to specify a chart for new interest rate cuts, citing uncertainty regarding consumer price growth. Thus, the French indicator fell from 0.2% to 0.1% MoM and from 2.7% to 2.6% YoY. Today, Germany will publish a monthly report from the German Federal Bank on the prospects for the national economy for the near future, and on Friday – June business activity indices. The service PMI may increase from 54.2 points to 54.4 points, and the manufacturing PMI from 45.4 points to 46.4 points.
Support and resistance
On the daily chart, Bollinger bands are actively declining: the price range is expanding, but not as fast as the “bearish” activity develops. The MACD indicator is declining, keeping a strong sell signal (the histogram is below the signal line). Stochastic is near its lows, indicating that the index may become oversold in the ultra-short term.
Resistance levels: 18091.9, 18200.0, 18300.0, 18400.0.
Support levels: 18000.0, 17908.2, 17750.0, 17650.0.
Trading tips
Short positions may be opened after a breakdown of 18000.0, with the target at 17750.0. Stop loss — 18091.9. Implementation period: 2–3 days.
Long positions may be opened after a rebound from 18000.0 and a breakout of 18091.9, with the target at 18300.0. Stop loss – 18000.0.
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