Dax 30

Closing price in previous report: 10337.02 Current Level: 12420.19 (+20.15%) Observations on the daily chart: In the May 2020 report, a supply zone at 11500 was observed and the index looked likely to trade sideways under this level. However, prices have continued its up-move above 11500 with a 11% rally to 12800. Currently trading above its 50 day and 18 day moving averages, which are likely to form support areas for the index in the near term.

Observations on the momentum oscillator: The momentum indicator reflects weakness as prices move higher.

Summary: The index is in a long term downtrend and a short term uptrend. Momentum shows weakness as prices rise. This indicates selling pressure, despite which however, a correction in prices has not taken place. On the upside, 13000 is a formidable resistance level. In case of a downside, the index should see buying interest at 11500, which continues to remain a significant near term support, failing which selling pressure will likely increase and drag the index to 10000. Trades should be placed only after a trend is confirmed rather than attempting to preempt a market direction which usually results in being trapped in the wrong side of a trade.

It is possible that the trend may reverse suddenly, strict stop-losses should be maintained.

Important price points in July 2020:

Resistance levels: 13000 (+4.6% from current level)

Support levels: 12200 (-1.7% from current level), 11500 (-7.4% from current level), 10800 (-13% from current level), 10000 (-19.48% from current level).