Markets

DAX® – 200-day line and gap in focus

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HSBC Daily Trading

200-day line and gap in focus

Despite a major decline, the DAX® experienced a fairly quiet trading session on Friday. The small trading range is the best evidence for this statement. We evaluate this development constructively, because the German standard values ​​have now been able to defend the bastion from the 200-day line (currently at 12,152 points) as well as the gap in the upward course from Tuesday (12,133 to 11,968 points) for 4 trading days. At the beginning of the week, long-term smoothing comes into focus again and should be subjected to another stress test. At 11,700 / 11,600 points there is the next important stop zone. At this level, various old highs and lows together with the recovery trend since March (currently at 11,755 points) and the 61.8% fibonacci retracement of the spring correction (11,679 points) form a massive accumulation support. In addition to these chart-technical catchpoints, the subdued mood also secures the DAX® downwards (see “HSBC Daily Trading” from June 19). On the upside, the recent daily highs stand out at a good 12,400 points. A jump over these hurdles is necessary to spark new upward momentum in the direction of the old upward trend since the end of 2018 (currently at 12,732 points).

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DAX® (Daily)

Chart DAX®

New all-time high – pull stops

One of our favorite approaches – the combination of the concept of relative strength according to Levy with a breakout from a chart-technical consolidation pattern – was identified in the middle of May for PayPal shares (see “HSBC Daily Trading” on May 13). The technology title has meanwhile been able to capitalize sustainably on this double driving factor and has increased its record level to USD 171.12. The minimum price target from the shift zone shown in the chart was also processed as planned (see chart). Although it is difficult to derive further targets in the “uncharted territory”, investors can stay on the ball. After all, the house trend is absolutely intact and the stock continues to have a very high relative strength. When a trade starts, as in the specific PayPal case, money management becomes more important at some point. In order to secure price gains that have accrued to date, investors can adjust the stop loss for existing commitments to the level of the latest daily upward gap ($ 158.30 / $ 157.92).

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PayPal (Weekly)

Chart PayPal

light at the end of the tunnel

After the price losses since November 2019, the Peugeot share has recently formed a small double floor based on the important horizontal holding zone at around EUR 10 in March and May. In order to give emphasis to the lower reversal, a permanent spurt above the temporary recovery high of EUR 14.24 would be necessary (see chart). The mathematical connection potential from the trend reversal pattern described can then be estimated at around EUR 4 and is therefore sufficient to target the 38-week line (currently at EUR 17.82). The car title receives tailwind from the MACD. As with so many other underlyings, the trend follower recently received a new entry signal at a record-low level. The stabilization that was initiated should ultimately succeed. The above Long-term smoothing line then marks the start of a striking resistance zone, which feeds itself from various old highs and lows at around EUR 20. But even without a major upward movement, attractive sideways returns can currently be achieved due to the high volatility in the automotive sector with investment products on the Peugeot share.

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Peugeot (Weekly)

Chart Peugeot

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