ALB Limited 30.07.2020
Chart of the Day DAX30
Germany announced its unemployment change figure for July, Actual. -18K versus a forecast of 43K as well as its GDP (QOQ)(Q2) with a forecast of -9.0% versus the actual figure of -10.1%. The worse-than-expected GDP figure was to be expected considering the ongoing coronavirus pandemic affecting the global economy. It is important to emphasize that Germany along with France did agree on a stimulus package totaling €1.8 trillion for the EU of which €750 billion would be allocated as loans and grants whilst a seven-year €1 trillion EU budget for the EU recovery. Last night, U.S. Fed chair Powell, left the interest rate unchanged at 0.25% to support the economy. From a technical perspective, the Dax is within the range created from the lows made on 10/07/2020 at 12384 and the high on 13/07/2020 at 12862. Price is also testing the swing highs made on 30.06.2019 at 12647 and above the daily 200 simple and exponential moving averages. From 08/07/2020, we saw the price unable to close at the lows for a few sessions suggesting that buyers are stepping in to shore this market and reject further decline. If we are to assume that such a scenario will occur today, then we could see the German Dax close above its low. However, from a weekly time frame, the inverted hammer made for the weekly ending 19/07/2020 could be a worrying sign of sellers taking control at least in the short term.
