The DAX 40 index rebounded by 0.57% to trade at around 17,899 points on Monday, recovering from a previous session’s dip, influenced by eased tensions in the Middle East and a positive shift in market sentiment.
Key Points
- Upcoming earnings from tech giants like Microsoft and Alphabet are expected to significantly impact market dynamics.
- Earnings from major European banks could illuminate the effects of high-interest rates on profitability.
- Key economic data releases this week include S&P Global PMI surveys and a U.S. inflation gauge.
DAX 40 Daily Price Analysis – 22/04/2024
The DAX 40 index experienced a notable rebound in Monday’s trading session, registering a 0.57% increase to close at approximately 17,899 points. This movement marks a recovery from last Friday’s dip, where the index closed at 17,737.36, reflecting a decrease of 0.56%.
The opening price on Monday was slightly higher than Friday’s close, indicating a positive shift in global market sentiment. The change in mood among investors is largely attributed to reduced tensions in the Middle East, which has helped to restore risk appetite and pivot focus towards a busy week of corporate earnings.
Investors are particularly keen on the tech sector, with upcoming earnings reports from major US firms such as Microsoft, Alphabet, and Meta. These reports are expected to significantly influence market dynamics, given their substantial weight in global equity markets.
European banks are also under the spotlight, with key earnings releases scheduled from Deutsche Bank, BNP Paribas, Barclays, and Lloyds. These announcements are pivotal, as they will provide insights into the impact of sustained high-interest rates on banking profitability. Furthermore, the performance of European shares was boosted by the news from Portuguese oil firm Galp, which saw a sharp rise after a promising update on its gas exploration activities in Namibia.
Key Economic Data and News to Be Released Today
In addition to corporate earnings, investors are also focused on upcoming economic data releases. Notably, the flash S&P Global PMI surveys and a significant US inflation gauge are on this week’s agenda. Domestically, Germany’s industry lobby BDI has indicated a potential decline in industrial production and stagnation in exports, setting a cautious tone for Europe’s largest economy.
Later today, the market will also pay close attention to the euro zone’s April consumer confidence data and comments from ECB President Christine Lagarde. These could provide further cues on the economic outlook and monetary policy direction, potentially impacting market sentiment and the DAX’s trajectory.
DAX 40 Technical Analysis – 22/04/2024
The DAX 40 index exhibits a bullish trend in the 15M timeframe, currently positioning itself favorably above the 200 EMA. This implies a strong upward momentum in the short term, with the index breaking and closing above key resistance levels.
Currently, the DAX 40 is trading above the pivot point, reinforcing the bullish outlook. However, it’s important to remain cautious as a close below the pivot point could significantly alter market perceptions.
Should the index fall below this level, it potentially invalidates current buy setups. This scenario would hint at a shift towards short-term bearish sentiment, suggesting that traders might consider preparing for a possible downtrend.
DAX 40 Fibonacci Key Price Levels 22/04/2024
Short-term traders planning to invest in Dax 40 today should keep a close eye on the following key price levels for the day:
| Support | Resistance |
| 17567.55 | 17852.97 |
| 17479.38 | 17941.14 |
| 17336.67 | 18083.85 |
Risk Disclosure: The information provided in this article is not intended to give financial advice, recommend investments, guarantee profits, or shield you from losses. Our content is only for informational purposes and to help you understand the risks and complexity of these markets by providing objective analysis. Before trading, carefully consider your experience, financial goals, and risk tolerance. Trading involves significant potential for financial loss and isn't suitable for everyone.
