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. See our updated Privacy Policy here.

0

Notifications

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

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
GBP/USD
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • The continuity seen across these volatility cycles is a good thing. Historical precedence offer a blueprint for identifying conditions supportive for a vol-event to occur, and how they may unfold. Deepen your knowledge of historical volatility here: https://t.co/vg7w10la3j https://t.co/z8z6BNudn5
  • #PELOSI SAYS WE ARE GOING TO PASS THE INFRASTRUCTURE BILL THIS WEEK PELOSI SAYS SHE WILL NEVER BRING TO THE HOUSE FLOOR A BILL THAT DOESN'T HAVE THE VOTES TO PASS $USD $SPX $XAUUSD
  • Short-term uncertainties to keep the pressure on equity markets. Get your weekly equities forecast from @JMcQueenFX here: https://t.co/JLMDPZKvN8 https://t.co/YbdJnwoqj1
  • Many people are attracted to forex trading due to the amount of leverage that brokers provide. Leverage allows traders to gain more exposure in financial markets than what they are required to pay for. Learn about FX leverage here: https://t.co/BdgFmkRxVw https://t.co/hqW38VawJl
  • - Unreal atmosphere - Shame about the result, but no complaints - Usyk masterclass - Heavyweight division blown wide open https://t.co/BKCLJTDk9h
  • The USD could still rally a bit from here, but has resistance not far ahead that it will need to overcome if it is to extend to a larger degree. Get your weekly $USD technical forecast from @PaulRobinsonFX here: https://t.co/n0CVWWOJDe https://t.co/0uLjsQ2gwM
  • When it comes to buying and selling forex, traders have unique styles and approaches. Learn about buying and selling forex here: https://t.co/D8DXSAdpqC https://t.co/nfiFAlyYXv
  • Slippage can be a common occurrence in forex trading but is often misunderstood. Understanding how forex slippage occurs can enable a trader to minimize negative slippage, while potentially maximizing positive slippage. Learn about FX slippage here: https://t.co/Blrl0unrdT https://t.co/mIsVJ4zTbB
  • What is your forex trading style? Take the quiz and find out: https://t.co/YY3ePTpzSI https://t.co/hymrumanUY
  • Greed is a natural human emotion that affects individuals to varying degrees. Unfortunately, when viewed in the context of trading, greed has proven to be a hindrance more often than it has assisted traders. Learn how to control greed in trading here: https://t.co/kODPAfs2Iz https://t.co/6dAqxsVfxJ
DAX 30 Hits a Three-Month Low as SAP Cuts Earnings and Revenue Outlook

DAX 30 Hits a Three-Month Low as SAP Cuts Earnings and Revenue Outlook

Nick Cawley, Strategist

DAX 30 Analysis, Prices and Charts

  • DAX 30 hits a multi-month low as SAP slumps.
  • Client sentiment bearish as long-positions grow.
Advertisement

The DAX 30 hit a fresh three-month low in early turnover as the indices’ largest constituent, and one of the world’s largest publicly traded software companies, SAP, fell by in excess of 17% after warning over future earnings and revenue growth. SAP, the largest component of the DAX 30, said revenue and operating profit fell in Q3 and abandoned its 2023 forecasts due to the ongoing economic hit from the coronavirus. In early trade, the DAX 30 fell by around 350 points with the fall in SAP shares contributing over 200 points to the overall slump.

DAX 30 Hits a Three-Month Low as SAP Cuts Earnings and Revenue Outlook

The German 30 hit a low of 12,260 today, a three-month low, and may struggle to break higher in the short-term. The upside is currently blocked by both the 20- and 50- day simple moving averages between 12,825 and 12,910, while today’s sell-off also created a short-term lower low, underlying the current weakness in the indices. A further sell-off would see the 200-dma at 11,868 and the 61.8% Fibonacci retracement at 11,592 come under pressure.

DAX 30 Daily Price Chart (February – October 26, 2020)

DAX 30 Hits a Three-Month Low as SAP Cuts Earnings and Revenue Outlook

IG retail trader data show 58.06% of traders are net-long with the ratio of traders long to short at 1.38 to 1. The number of traders net-long is 15.04% higher than yesterday and 73.66% higher from last week, while the number of traders net-short is 3.86% higher than yesterday and 26.90% lower from last week.

We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests Germany 30 prices may continue to fall.Traders are further net-long than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger Germany 30-bearish contrarian trading bias.

What is your view on German Equities/DAX 30 – are you bullish or bearish?? You can let us know via the form at the end of this piece or you can contact the author via Twitter @nickcawley1.

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

DISCLOSURES