News & Analysis

Chart of the Day: Wednesday 12th June

มิถุนายน 13, 2019
DAX – 4Hr

Hampered by a European slowdown, Brexit and the growing troubles surrounding Deutsche Bank, yet 2019 has seen a strong start for the DAX Index, which as of writing is up 16.55% year-to-date, erasing around 50% of the decline seen in 2018.

But with the DAX close to all-time highs, will it be able to remain there, or push higher still, amidst all the geopolitical turbulence in Europe and the trouble that the German banks find themselves in?

2019 saw the DAX rally and form a supporting bullish trendline, however, after failing to clear the resistance level from the April 2015 high we saw that trendline breakdown, Gapping lower significantly on the daily open on the 29th May. Since then, the Index has pushed higher and retested that trendline but once again has fallen away.

On the 4 hour chart this may not seem hugely significant but if you zoom out to the daily view, what you will see is that the DAX is making a lower high, coupling that together with lower lows, could indicate that the tides may be turning on the bull rally for the DAX.

Needless to say, we’ll be paying close attention to the Index in the coming weeks and also the Deutsche Bank updates especially with financials being the second biggest sector for the DAX.

 @Alex_GoMarkets

Sources: Go Markets, Meta Trader 5, TradingView, Bloomberg

Disclaimer: Articles and videos from GO Markets analysts are based on their independent analysis. Views expressed are of their own and of a ‘general’ nature. Advice (if any) are not based on the reader’s personal objectives, financial situation or needs.  Readers should, therefore, consider how appropriate the advice (if any) is to their objectives, financial situation and needs, before acting on the advice.

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