Stock Market forecast 2022 trend analysis and Dax trading signals

Stock Market forecast 2022

Stock Market forecast 2022 trend for November December

Stock Market forecasts 2022 Frankfurt Index analysis in the short and long term through the economic cycles of W.D. Gann.

Dax Index Stock Exchange Chart with technical framework

Dax index today
Dax index weekly

Frankfurt Stock Exchange short term

From June 2021 to February 2022, the price dynamics in the German market were lateral, alternating on two levels in the area of 16,260 and that of 15,050 points.

The end of the distribution period coincided with the weekly Set Up of February 2022:

with the negative infringement of the lower level of the trading range area, the Dax Index had a strong corrective push, reaching 12,438 points in the week of 11 March.

From 11 March until today, the weekly dynamics of the Frankfurt Index has again performed a new phase of negative laterality, alternating highs and lows within a descending corridor outlined by yellow 1×2 angles.

The latest trading signals for this month of October coincided with the weeks of 21 and 28.

In the week of 21 October, the Dax Index continued the pull back started on 07 October and reached static resistance in the 12,877 area.

The next Set Up will expire on October 28th. Any return below 12,370 points will indicate the restoration of short-term negativity. Supports in area 12,270; 11.980.

The positive break of 12.960 will confirm the ongoing positive lateral trend: resistance in 13.100 area.

However, even if there will be a positive violation of 12,960, it will be necessary to take into account in the period of next November, if there is a possible bearish infringement, of the weekly low of 28 October:

this condition will be a clear sign of a return to the weakness of the Dax Index.

German Stock Market monthly trend

Dax index forecast
Dax index monthly

The two yellow colored vectors, visible in the upper part of the slide, describe the median lines of the medium-term ascending corridor.

The medium-term negative trend, which began last February, brought back the prices in the area of these median angles which formed a strong magnetic field:

in fact, since March 2022 the prices of the Dax Index have alternated between the area of 14,320 and 12,200 points.

The 1×4 ascending angle from the minimum of March 2020, visible in purple color, provided an important support in the period September-October 2020.

The Stock Market signal in the medium term coincides with the month of November 2022.

Reaching 11,830 in November will confirm the corrective trend: supports in area 11,700; 10,670 points.

Stock Market forecast 2022 and long term

Dax index long term forecast
Dax index quaterly

The long-term performance of the Frankfurt Stock Exchange has been negative since the first quarter of 2022.

The Minimum Square that expired in that period generated a strong corrective push that is still continuing today.

Upcoming dynamic supports 11,320; 10,500.

Trading and investing on the German Stock Market with Gann technique

William Delbert Gann was one of the first American economists to interpret the dynamics of the prices of a stock through the correlation of three dimensions: price, time and trading volume.

The linear geometric model underlying his theory correlates two of the three dimensions, namely price and time, through a universal mathematics that is the basis of the evolution of the universe itself.

The third dimension was considered separately as a confirmation of the trading signals.

His studies focused mainly on the time dimension that led him to the discovery of the most important Natural and Dynamic temporal cycles of the financial markets.

Within these cycles there are particular price-time crossings that determine the dynamic thrusts, accelerations or distribution or accumulation phenomena.

These sections or Set Up are the trading signals for starting or closing a Stock Exchange transaction.

The Top Trader© Stock Exchange software was created to correctly apply Gann Technique in a simple and immediate way and is available in this blog.

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