Technical Analysis DE30: 2019-05-17

Dmitry Lukashov IFC Markets

Improving growth bullish for German stock index

Germany’s economy returned to growth in the first three months of 2019. Will the DE30 stock index continue advancing?

German data lately were positive on balance: contraction in manufacturing sector slowed while the services sector expansion accelerated in April, the trade surplus grew more than forecast in March, industrial production grew in March when a decline was expected, and German economy recorded a 0.4% growth in the first quarter after stagnant fourth quarter in 2018. On the other hand retail sales declined in March, and economic sentiment for May deteriorated according to ZEW report. Improving economic growth is bullish for Germany’s stock market index.

DE30 gaining above MA(50) 05/17/2019 Technical Analysis IFC Markets chart

On the daily timeframe DE30: D1 is rising after bouncing off 50-day moving average MA(50).

The Donchian channel indicates no trend: it is flat.
The Parabolic indicator has formed a buy signal.
The MACD indicator is above the signal line and the gap is widening, which is a bullish signal.
The Stochastic oscillator is rising but has not reached the overbought zone.

We believe the bullish momentum will continue as the price breaches above the upper boundary of Donchian channel after rising above previous day high at 12317.95 . This level can be used as an entry point for placing a pending order to buy. The stop loss can be placed below the lower Donchian boundary at 11836.62. After placing the order, the stop loss is to be moved every day to the next fractal low, following Parabolic signals. Thus, we are changing the expected profit/loss ratio to the breakeven point. If the price meets the stop loss level (11836.62) without reaching the order (12317.95), we recommend cancelling the order: the market has undergone internal changes which were not taken into account.

Technical Analysis Summary

Position	Buy
Buy stop	Above 12317.95
Stop loss	Below 11836.62

Want to get more free analytics? Open Demo Account now to get daily news and analytical materials.

Author

Dmitry Lukashov

IFC Markets

Dimtry Lukashov is the senior analyst of IFC Markets. He started his professional career in the financial market as a trader interested in stocks and obligations.

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.