DAX Top-Down Analysis – 13 December 2021
Weekly Chart
The weekly DAX (GER30) has confirmed a swing low. The reference low is the candle ending 3 December (aqua arrow). Last week, the price closed above the reference candle's high (aqua horizontal). This has set up a platform for a potential upswing. Whilst it does not guarantee an upswing, an upswing cannot take place without a confirmed swing low. We also note that the black 30-week EMA has turned up, which is a bullish development.
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Past Performance: Past Performance is not an indicator of future results.
Daily Chart
There was a long candle last Tuesday. This took the DAX (GER30) out of its weak area and into its neutral area, between the blue bands. This was a bullish development. Since then, the index has pulled back. This decline (2-3) looks to be the correction of the previous impulse (1-2). Friday's candle has charted the lowest low in a 3-candle cluster (aqua arrow). A close above its high (aqua horizontal) will confirm a daily swing low. If so, and as above, this is a platform for potentially higher prices but does not guarantee higher prices (blue dashed line).
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Past Performance: Past Performance is not an indicator of future results.
Hourly Chart
The hourly chart shows bullish signs. The EMAs are in bullish mode and are showing angle and separation (aqua ellipse). The stochastic is moving into its upper quintile (aqua arrow) and, if it is able to maintain this, will suggest an underlying bullish momentum. This week is important in terms of monetary policy. The Fed, BoJ, BoE, and ECB are scheduled to release rate decisions this week at a time when inflation is looking increasingly rampant. As such, these are likely key drivers in risk sentiment and market direction for the week.
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Past Performance: Past Performance is not an indicator of future results.
Featured Image by Gerd Altmann from Pixabay
Russell Shor
Senior Market Strategist
Russell Shor is a Senior Market Strategist at FXCM, having been promoted to the role in 2025 in recognition of his depth of insight and consistent delivery of high-impact market analysis. He originally joined FXCM in October 2017 as a Senior Market Specialist.
Russell holds an Honours Degree in Economics from the University of South Africa, is a certified FMVA®, and a full member of the Society of Technical Analysts (UK). With over 20 years of experience in financial markets, his work is renowned for its clarity, precision, and strategic value across asset classes.
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