The leading German index will start trading significantly today. The announcement by the US Fed to buy corporate bonds is providing a tailwind. This provides for an expansion of the existing Secondary Market Corporate Credit Facility (SMCCF). The corporate bond market has already been supported by buying ETFs. Direct purchases of corporate bonds are now to begin. This announcement came as a surprise. The US Federal Reserve is thus signaling that it will continue to intervene at any time and continuously “adapt to the reality” of its programs.
This of course also gives the DAX 30 a significant boost. This is already priced at 12,295 in advance. With that, he would recapture the immensely important 200-day line. This currently runs at 12,141 points. But it would also ward off yesterday’s gap closing at 11,447 index counters. The technical chart view is now directed upwards again. Fundamental figures are also expected to be encouraging today. ZEW economic expectations are forecast to increase significantly. US retail sales as well. Albeit from a very low level. It remains to be seen whether the gap at 12.471 will be closed again. This would also mean a return to upward mode, which could form in mid-May. For the time being, however, the sustainable over-negotiation of the 200-day line remains important. The market technology (MACD, RSI, slow stochastics) is neutral. The volume remains constant. “Never fight the Fed” …
– Next technical chart resistances: 12.301, 12.471, 12.913
– Next important chart support: 12.141, 11.828, 11.625
– Upper Bollinger band: 13,070, middle Bollinger band: 11,850 and lower Bollinger band: 10,631
– 100-day line: 11,448 and 200-day line: 12,141 and: 38-day line: 11,274
– Indicators: MACD: neutral | Slow stochastics: neutral | RSI: neutral | Momentum: weaker
– In total: neutral
– Volatility (VDAX-NEW): 40.47
– The opening at 9:00 a.m. is expected at around 12,300
– (Trailing) stop loss: 12.141, 11.828, 11.625
Primary trend (long-term): Higher sideways market
Secondary trend (medium term): 12.471 – 12.141
Tertiary trend (today): recapturing the 200-day line
Disclaimer: The text is a column of the Martin Utschneider, Head of Technical Analysis Personal-Financial.com Markets at Donner & Reuschel. The content of the column is not the responsibility of 4investors and therefore does not necessarily have to agree with the opinion of the 4investors editorial team. Any liability and claims are therefore expressly excluded by 4investors!
At a glance – chart and news: DAX stock index