Daxanalysis
DAX Elliott Wave Analysis for Wednesday 31/05/2023Trading day preparation. Although pullback is expected in the higher timeframe, we might see some more upside in the lower timeframe. We discuss several scenarios that could play out. For today, we see an entry for both a long and short trade at the extremes.
DAX Elliott Wave Analysis for Monday 30/05/2023Trading day preparation. Although pullback is expected in the higher timeframe, we probably still go up in the lower timeframe. We discuss several scenarios that could play out. For today, we see an entry for both a long and short trade at the extremes.
Key Levels and US Market Review for the Asian session open 25/05A continued debt ceiling standoff pressured share market Indexes lower overnight as more traders were happy to lock in some gains. Indexes pushed down into support levels as traders went risk off. The UK inflationary numbers came out higher than expected pointing to more interest rate rises from the BOE. The US open was weak and bulls found no love from the FOMC statement which continued to re-iterate focus on coming data which will determine whether there are further rate rises or not. Bond markets continued to factor in higher interest rates in the pipeline as yields moved higher.
Expecting weaker open in Asian markets with the ASX200 expected to start down 30 points and the Hang Seng expected to open down 500 while the Nikkei to open mildly lower down 80 points.
I expect that there is major concerns over the US economic slowdown brewing, and how the US is going to fund its debt with GDP easing. Longer term trends are for interest rates to level out. But if the economy cools while inflation remains elevated, then it is difficult to cut rates to stimulate growth...we will see how things play out soon I suspect.
KEY ACTIONABLE LEVELS into the Asian market session. Review of the European and US sessions and what that will mean to the price action in the near term along with key levels to watch.
Markets covered :-
DOW
Nasdaq
DAX
FTSE
ASX200
Hang Seng
USD Index
Gold
Oil
Copper
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DAX Index: Potential Rise Amidst US Economy CollapseIn this analysis, we explore the potential for the DAX Index to experience a rise in the future due to the potential collapse of the US economy. We believe that the DAX Index has reached a key target at 15,901.47 and is poised to gradually move towards 22,031.79. This analysis examines the potential factors influencing this projected upward movement.
1. US Economy Collapse and Global Impact:
A potential collapse of the US economy could have significant global implications, including a potential shift in investment flows. As investors seek stability and alternative markets, the DAX Index could benefit from increased demand, potentially driving its value higher.
2. Key Target Achieved: 15,901.47:
Our analysis indicates that the DAX Index has reached a key target of 15,901.47. This level could serve as a strong support zone and may attract further buying interest. Traders should closely monitor price action around this level as it could provide insights into the market's future direction.
3. Gradual Rise Towards 22,031.79:
Based on our analysis, we anticipate a gradual rise in the DAX Index toward the target of 22,031.79. This projection takes into consideration potential shifts in investor sentiment and capital flows away from the US economy. However, it is important to note that market conditions are subject to change, and careful monitoring of price action and fundamental developments is essential.
4. Factors Driving Potential Rise:
Several factors contribute to the potential rise of the DAX Index amid a US economic collapse:
a. Economic Stability: The DAX Index is composed of major German companies, many of which have strong fundamentals and global reach. Germany's economic stability and resilience may attract investors seeking safe-haven assets during uncertain times.
b. Trade Relationships: Germany has strong trade relationships with various countries outside the US, allowing it to potentially benefit from diversification and increased demand for its exports.
c. Investor Confidence: A US economic collapse could lead to a loss of investor confidence in the US dollar. As investors search for alternative investment opportunities, the DAX Index could emerge as an attractive option, driving its value higher.
While the analysis presented suggests the potential for a rise in the DAX Index due to a US economy collapse, it is crucial to approach trading and investment decisions with caution. Market conditions are subject to change, and unforeseen events can significantly impact asset prices. Traders should conduct thorough research, consider risk management strategies, and closely monitor market developments to make informed decisions.
Disclaimer: This analysis is for informational purposes only and should not be considered as financial advice. Trading involves risks, and traders should conduct their research and analysis before making any investment decisions.