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DAX 40 Daily Price Analysis – DAX 40 Starts Strong, Then Dips Ahead of US Consumer Confidence Data

  • 2 mins read ●
  • Published:
dax30 germany market analysis 2

Today’s wholesale price index data, which came out higher than expected, initially boosted the DAX, but gains were quickly reversed.

Key Points

  • DAX 40 closed up 0.51% at 18,801.61, driven by positive Ifo indices.
  • DAX opened higher, hit 18,863, then dropped to 18,780.80, down 0.11%
  • The US CB Consumer Confidence Index expected later today is anticipated to impact market direction, with a drop potentially signaling weaker consumer spending.

DAX 40 Daily Price Analysis – 28/05/2024

On Monday, the DAX 40 closed at 18,801.61, up 0.51% from its open of 18,706.22. This positive movement was primarily influenced by the steady Ifo Business Climate Index, which remained at 89.3 in May, alongside an increase in the Ifo Expectations Index from 89.7 to 90.4. Although the Ifo Current Conditions fell from 88.9 to 88.3, the overall sentiment remained optimistic. Notably, the Expectations Index’s uptrend was a positive signal for the DAX, reflecting improved business confidence and economic outlook​.

The automotive sector led the gains, with Porsche and Volkswagen posting significant rallies of 2.78% and 1.65%, respectively. BMW and Mercedes-Benz Group also contributed to the upward movement, ending the session with gains. In contrast, banking stocks such as Commerzbank and Deutsche Bank closed in negative territory, impacted by broader economic concerns and regulatory signals from the ECB​.

Today, the DAX opened at 18,801.61 and quickly soared to hit 18,863 after the wholesale price index data was released. The data came out higher than expected. However, the price returned all the gains and is currently trading at 18,780.80, reflecting a minor decrease of 0.11% as of the latest update. The market’s current stance suggests a wait-and-see approach as traders anticipate potential volatility stemming from upcoming reports.

Key Economic Data and News to Be Released Today

The US CB Consumer Confidence Index is expected later in the day. This data is expected to play a pivotal role in shaping the market’s direction. A drop in US consumer confidence could signal weaker consumer spending, influencing global economic outlooks and potentially affecting DAX-listed stocks.

Visit our Economic Calendar

DAX 40 Technical Analysis – 28/05/2024

Looking at the price action in the M15 timeframe, the Dax 40 index is currently bullish since it is trending above the 200 EMA. Although the price had fallen sharply earlier today, it quickly found support at the daily pivot point.

dax 40 m15 chart
Dax 40 – 15-Minute Chart

The RSI also took off from the oversold level, hinting that the bearish retracement may be over and the index may be ready to resume its bullish movement. However, the price is not in an optimum position for a BUY entry yet, even though the overall bias looks bearish.

A clear break above the established high of the day is a strong confirmation for those seeking to enter a BUY position on the index today.

Dax 40 Fibonacci Key Price Levels 28/05/2024

Short-term traders planning to trade the Dax index today should keep a close eye on the following key price levels for the day:

SupportResistance
18711.9318811.63
18681.1318842.43
18631.2818892.28

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.

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