IFC Markets - Analytics

    IFC Markets

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    Technical Analysis DE30 : 2015-07-20

    Even closer to historical high

    Let us consider the German DAX 30 Index CFD, quoted in the euro and marked as DE30 in the NetTradeX trading platform. After Greece achieved a new bailout agreement the default became less likely. This results in the growing German stock index. The financial aid volume worth €86bln, which is much larger than discussed earlier, weakens the euro, producing additional support to German DAX 30. On Friday Markit information agency will publish June Industrial PMI in Germany, which is considered as the most important macroeconomic release this week.


    On the daily time frame the DE30 CFD has switched the trend to bullish, the price is located above the 200-day Moving Average. The chart has 2 unclosed gaps, which shows the power of the current trend. Bollinger Bands have expanded with a positive slope, indicating volatility growth. Parabolic and MACD have been giving buy signals. The RSI-Bars indicator has been advancing and continues the bullish divergence. It has not yet reached the overbought zone. The bullish movement may accelerate if another DE30 bar closes above the Bollinger upper boundary and the fractal at 11930. A stop loss may be placed below the first gap at 11521 or below the second gap and the Parabolic signal at 11016. After pending order activation the stop loss is supposed to be moved every four hours to the next fractal low, following Parabolic and Bollinger signals. Thus, we are changing the probable profit/loss ratio to the breakeven point. The most cautious traders are recommended to switch to the H4 time frame and place a stop loss there, moving it after the trend. If the price reaches the stop loss without triggering the order, we recommend to cancel the position: the market sustains internal changes that were not considered.


    Position Buy
    Buy stop above 11930
    Stop loss below 11521 or 11016

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