Global stocks were relatively positive on Thursday as the market reflected on the relatively positive economic data from the United States. In Europe, the FTSE 100 index rose by 0.15% while in Germany and France, the DAX and CAC 40 indices rose by more than 0.50%. In the US, futures tied to the Dow Jones, Nasdaq 100, and S&P 500 indices rose by more than 0.30%. American futures will see little action today since the country is celebrating Thanksgiving. Data published on Wednesday showed that the US labour market was tightening while a key inflation gauge rose to the highest level since the early 90s.The euro wavered against the US dollar as the market assessed the potential policies by the incoming German government. Olaf Scholz will become the country’s first new chancellor in more than 16 years. In a statement, he pledged to launch major investments in the country. His coalition with greens means that the government will also invest in clean energy. The currency also wavered after the relatively weak German GDP data. The numbers showed that the economy expanded by 1.7% in the third quarter. This was a lower number than the median estimate of 1.8%.

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES : (TECHNICALS)

GER30 (DAX) has dropped severely low with relative strength index, MACD and Stochastic showing signs of oversold conditions in the interday time frames while just slight signs of recovery being taken in concern on the daily chart. We can expect a temporary bullish correction towards exponential moving average 50 and 200 in the daily time frame for taking an exit from the oversold conditions. On a broader aspect GER30 (DAX) will be taking continuation of bearish trend for a while in concern after Europe faces serious threats from the rise in cases of new Covid Variant. On the bullish side, 15800 price needs to be broken in an impulsive hawkish manner for the continuation of bullish trend. Anything below the exponential moving averages 50 and 200 in the daily time frame should be taken as a point of bearish reversal. 

DAX Meets Our Take Profit Zone

Nov 29 2021