Key economic events include the release of preliminary German inflation data, which is expected to rise slightly; investors are also awaiting the Economic Sentiment Index for the Eurozone and a speech by ECB Vice President Luis de Guindos.
Key Points
- The DAX 40 ended the previous week up 1.11%, supported by an ECB report suggesting potential June rate cuts.
- Today’s DAX opened slightly higher but slid 0.15%, indicating caution ahead of key economic releases.
- Technical analysis shows a bullish DAX 40, notably above the 200 EMA on the M15 chart, signaling possible continued gains.
DAX 40 Daily Price Analysis – 29/04/2024
The DAX 40 concluded the previous trading week on a positive note, with the index closing at 18,242.60, marking a 1.11% increase from the opening at 18,042.60. Notably, there were no significant economic statistics from Germany or the broader Eurozone to directly influence the market. However, investor sentiment was buoyed by an ECB report hinting at potential rate cuts in June. This outlook was shaped by the ECB Consumer Expectations survey, which pointed to diminishing inflation and income expectations, signaling a likely reduction in consumer spending in the near future.
Industry-specific movements saw Siemens Energy AG leading the charge with a significant 5.33% increase, while other major companies like Infineon Technologies and SAP also posted gains. The automotive sector recovered from its previous losses, with Mercedes-Benz, BMW, Volkswagen, and Porsche all registering gains. Conversely, the banking sector had a mixed session; Deutsche Bank experienced a decline, whereas Commerzbank saw an increase.
As of today, the DAX opened slightly higher at 18,244.98 but has since modestly declined by 0.15% to 18,217.14. The slight pullback reflects a cautious stance among investors as they digest the broader implications of the ECB’s monetary policy stance and prepare for upcoming economic releases.
Key Economic Data and News to Be Released Today
The immediate focus for investors will be on today’s release of preliminary inflation figures for Germany. A projected slight increase in the annual inflation rate to 2.3% from 2.2% could impact investor sentiment regarding future ECB actions. A softer-than-expected inflation reading might strengthen the case for not just one but potentially multiple ECB rate cuts in 2024.
Furthermore, the Economic Sentiment Index for the Eurozone is anticipated to show a modest improvement, which could lend some support to the market. However, investors will also be closely monitoring a scheduled speech by ECB Vice President Luis de Guindos, whose insights into the economic outlook and inflation could significantly influence the market.
DAX 40 Technical Analysis – 29/04/2024
The DAX 40 demonstrates a consistent bullish trend across all observed timeframes, with notable strength on the M15 chart, where the index remains well above the 200 EMA, indicating sustained upward momentum. Concurrently, the RSI on the M15 has dipped into oversold territory, hinting at the potential for a bullish continuation in the near term.
Traders seeking entry points should watch for a rebound from the daily Pivot point or the 200 EMA, as these levels are likely to act as significant supports. A successful test of these areas could provide an optimal buy signal, reinforcing the prevailing bullish sentiment.
Investors should set a price target near 18,350, contingent on the continuation of the current bullish trajectory. However, vigilance is advised, as a close below 18,010.98 would negate the bullish scenario, suggesting a potential shift towards a bearish market.
DAX 40 Fibonacci Key Price Levels 29/04/2024
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 |
| 17922.31 | 18320.90 |
| 17799.18 | 18444.03 |
| 17599.89 | 18643.33 |
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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.
