DAX Top-Down Analysis – 13 December 2021

  • GER30

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.

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).

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 Specialist

Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.


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Past Performance: Past Performance is not an indicator of future results.

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