Stock market forecast today Dax Future strategy until july 2020

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Stock market forecast today Dax Future strategy

Stock market forecast today Dax Future strategy through the economic theory of the American trader W.D. Gann.

financial market forecast
Dax Index weekly 05.05.2020

Stock market forecast today short term

In the first quarter of 2020, prices on the German market have been a fluctuating trend.

In the first weeks of last January, the exchanges were developing in a “narrow range” or in a narrow side channel between the 13,550 and the 12,800 area.

Under the pressure of the medium-term signal that expired in January, the German market dynamics has violated the previous lateral phase upwards in the week of 14-02-2020, accelerating and reaching a top at 13.795, then it concludes and ends negatively at 13.579, 33.

The subsequent corrective violation of the lateral area just described on the lower level of 12,800 has indicated the failure of the bullish break-out of the first weeks of January.

The negative acceleration that followed has brought back the exchanges on the 1X4 angular support with origin the week of 28-12-2018, illustrated in purple in the photo just above.

In early March 2020, the external financial shock has generated a panic selling, accelerating the negative phase of Dax which was descending at a rate 4 times its natural drift or 1X1 angle.

Therefore the triggered over-balance has greatly increased the price dimension in favor of time, so that the correction is arrived at the subsequent weekly time Set Up of 20-03-2020 (expiry of Square of Range) reaching a minimum of 8,255.65.

From that time signal the market is started again with a significant pull-back: the two very close descending angles (colored yellow on the slide) has initially held back the recovery for two weeks in 10.130 area.

Subsequently, the short-term trend has begun again the recovery by returning to the 1X1 descending angle with the top of the previous week at 11.235.

The last short term signal in April is expired in the week of 17: at this juncture we have observed a bullish break from the previous weekly top.

Last week Dax market has broken again the 10,850 level upwards, confirming the short term positivity that generated the signal of 17th April.

Only the return below 10,200 will restore short-term negativity on the German market.

New temporal signals are taking place between the week of 22th and that of 29th May. In that period, we can observe if there will be a further recovery or if the market will tend to return to the area of ​​9.500-8.800, based on the evolution of the trend.

The “first sharp decline” will have to alternate with a new phase in which there will be a recovery in the time dimension rather than the price dimension.

The level of implied volatility of the options also will have to re-adjust, considering the March peaks around 60-80%.

Medium-term Dax Index technical analysis 

Stock market forecast
Dax Index monthly 05.05.2020

The slide just above clearly shows the end of the medium-term Up trend.

The ascending corridor that had lasted for about 10 years was breached downwards last March.

In this period the negative acceleration was rejected by the 1X2 Zero angle, illustrated with the last yellow vector at the bottom.

The next cycle signal will expire in May.

At the end of this period, it will be possible to observe what the dynamics of Dax Index will be until next July.

Dax Index analysis using Gann’s technique has been developed thanks to Top Trader software©.

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