News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
Oil - US Crude
Wall Street
More View more
Real Time News
  • Struggling to define key levels? Floor-Trader Pivots assist traders in identifying areas in a chart where price is likely to approach and can be used to set appropriate targets, while effectively managing risk. Learn how to use this indicator here:
  • Cyclical and non-cyclical stocks can help diversify a trader’s equity portfolio. Get your guide to understanding these stocks here:
  • Beautifully put.
  • Gold prices could claw back lost ground ahead of the non-farm payrolls report for November, buoyed by a dovish FOMC, falling real yields and rising inflation expectations. Get your $XAUUSD market update from @DanielGMoss here:
  • Recessions can devastate the economy and disrupt the fortunes of individuals, businesses, and investors. But economic decline in the business cycle is inevitable, and your trading can be defined by how you respond to crisis. learn how to prepare here:
  • Rather than focusing on earning a specific number of pips per day, traders need to focus on what can be controlled. In trading terms this relates to following a strategy perfectly, with no emotion or hesitation. Learn more here:
  • That if you’re offended by what someone says on Twitter and that ruins your day, you live an extremely lucky life to be able to have that be your biggest problem for the day.
  • Myth or fact? One thing is for sure, there are a lot of misconceptions about trading. Knowing the difference between common trading myths and the reality is essential to long-term success. Find out about these 'myths' here:
  • Moving averages are extremely popular due to its easy-to-use nature and multitude of uses when trading. What are some popular moving averages and how can you use them? Find out:
  • MACD who? The Moving Average Convergence Divergence (MACD) is a technical indicator which simply measures the relationship of exponential moving averages (EMA). Find out how you can incorporate MACD into your trading strategy here:
DAX 30 Price Outlook: 2009 Trendline in Focus as Index Aims Higher

DAX 30 Price Outlook: 2009 Trendline in Focus as Index Aims Higher

2020-03-25 18:05:00
Peter Hanks, Analyst

DAX 30 Forecast:

  • Last week the DAX 30 enjoyed support from a trendline drawn off the index’s 2007 high
  • Now, risk appetite has reemerged as investors assess implications of the various fiscal responses
  • Should bullishness continue, maintaining price action above the various trendlines may prove crucial in a prolonged recovery attempt

DAX 30 Price Outlook: 2009 Trendline in Focus as Index Aims Higher

Stocks continued to rebound on Wednesday following massive fiscal stimulus packages to combat the coronavirus and its adverse economic impact. In the case of the DAX 30 and Germany, officials have expressed a willingness to do whatever it takes to keep the economy afloat. Coupled with the $2 trillion package from the United States, price action would suggest investors have begun to wade back into the market. As a result, the DAX 30 has moved off the lows it established last week as it aims higher – for now.

DAX 30 Price Chart: Weekly Time Frame (2007 – 2020)

DAX 30 Price Outlook: 2009 Trendline in Focus as Index Aims Higher

In turn, the index will have to surmount nearby resistance if it is to continue higher. The first barrier to an extension is an ascending trendline derived from the index’s 2008 lows – currently existing around 9,640. That being said, a daily close above the level on Wednesday is an encouraging sign moving forward and may provide the DAX with a base from which it can attack the psychologically significant 10,000 mark slightly higher. If both are successfully breached, an ascending trendline from the 2011 and 2018 lows may be the next major area of resistance for the German equity index.

Starts in:
Live now:
Dec 02
( 16:12 GMT )
Recommended by Peter Hanks
Weekly Stock Market Outlook
Register for webinar
Join now
Webinar has ended

Either way, traders will have to sustain price action above the ascending line in the coming days for it to regain some semblance of its influence prior to the bearish break. Further still, lingering volatility should make consistent directional moves more difficult to establish. That, coupled with persistent uncertainty, could see the DAX 30 turn lower in the coming days. Should bearishness return, maintaining price action above last week’s low near 8,000 will be critical in warding off a deeper retracement.

Despite trading comfortably within a bear market, short-term rallies are not unheard of. While governments and central banks have made a substantial effort to buoy their respective economies, it seems illogical to suggest equity valuations should return to levels prior to the crash.

Germany 30 BULLISH
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily -24% 2% -6%
Weekly -24% 22% 5%
What does it mean for price action?
Get My Guide

Then, economic outlooks were being revised upward and global travel was flowing steadily. Now, an average citizen in most developed economies cannot go to a bar, restaurant, book travel or even go outside without the goal of fulfilling an essential need. Thus, I suspect bearishness to resume in the days ahead for the DAX and overhead resistance offers an attractive opportunity to reduce long exposure or explore bearish trading opportunities. In the meantime, follow @PeterHanksFX on Twitter for updates.

--Written by Peter Hanks, Junior Analyst for

Contact and follow Peter on Twitter @PeterHanksFX

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.