Today, the DAX 40 has risen by 0.30%, supported by technical factors and anticipation of key economic data releases.
Key Points
- Deutsche Bank’s downgrade of Stellantis added pressure on auto stocks.
- Banking stocks fell amid caution before Federal Reserve decisions.
- Upcoming German GDP and inflation data are crucial, affecting ECB rate cut expectations and market sentiment.
DAX 40 Daily Price Analysis – 30/07/2024
The DAX 40 index experienced a volatile session yesterday, closing at 18,362.45, down 0.58% from the previous day’s opening of 18,469.39. This decline was primarily driven by losses in auto stocks, with Mercedes Benz Group and BMW declining by 1.78% and 1.12%, respectively. The sector faced additional pressure after Deutsche Bank downgraded Stellantis from ‘Buy’ to ‘Hold,’ which dampened investor sentiment towards auto stocks.
Banking stocks also struggled, as both Commerzbank and Deutsche Bank recorded losses, influenced by cautious market sentiment ahead of the Federal Reserve’s decisions.
Today, the DAX opened at 18,362.45 and has since risen to around 18,419.00, marking a 0.30% increase. Early gains are likely supported by a mix of technical factors and anticipatory moves ahead of key economic data releases.
Key Economic Data and News to Be Released Today
Looking ahead, several high-impact economic events could influence the DAX’s performance. The German GDP growth data for Q2 2024, expected to show a modest 0.1% increase, will be closely watched. A weaker-than-expected figure could heighten concerns about the economic outlook and potentially support a softer inflation narrative.
Additionally, the release of Germany’s inflation numbers will be crucial. Economists predict the annual inflation rate will hold at 2.2% for June; any deviation from this could significantly affect investor expectations for future ECB rate cuts. A more dovish outlook from the ECB could lower borrowing costs, potentially boosting company profits and market sentiment.
DAX 40 Technical Analysis – 30/07/2024
From a technical analysis perspective, the 200 EMA is acting as a dynamic resistance level, with the price consistently testing but not decisively breaking above it. This behavior typically signifies that the overall trend remains bearish until a clear breakout above this EMA occurs.
The RSI is currently around 61.86, which is below the overbought threshold of 70. This suggests that while there is some bullish momentum, it is not yet overextended. The RSI is not in the oversold territory, indicating that there is room for the price to move upward before encountering significant resistance.
Given the current RSI and the price action around the 200 EMA, the DAX 40 is likely to experience a brief consolidation or mild upward movement. However, if the price breaks decisively above the 200 EMA, it could indicate a bullish reversal. Traders should watch for economic data releases and market sentiment indicators that could impact the index.
Dax 40 Fibonacci Key Price Levels 30/07/2024
Short-term traders planning to trade the Dax index today should keep a close eye on the following key price levels for the day:
| Support | Resistance |
| 18318.54 | 18501.15 |
| 18262.13 | 18557.56 |
| 1817082 | 18648.86 |
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.
