Yesterday’s trading was a so-called “pullback”, which can often be observed. As a confirmation, the DAX fell back to the 13,500 point mark and then went higher again.
Today’s trading day was marked by stabilization tendencies: the yield on government bonds fell again significantly, and the price of gold also rose on Friday after a week of intense trading.
Even the cryptocurrency Bitcoin rose again above the $30,000 mark after a massive drop.
With the closing price above the 14,000 mark, the German stock exchange gauge halted its five-week losing streak. Because the index ended the session above Friday’s closing level last week, which was 13674 points.
On a weekly basis, the situation in the US markets looks different. US indices may not end their losing streak given last week’s losses. According to Thomas Altmann of investment firm QC Partners, “The Nasdaq 100 and Standard & Poor’s 500 to finish the sixth consecutive week in red.”
An unusual situation. “There have only been three longer negative streaks in the 95-year history of the S&P 500, the last of which was in 2001,” explains the capital market expert. Experienced stockbrokers recall: in 2001, the technology bubble burst in stock markets around the world.
The DAX downtrend remains the same
Even if investors prepare for a quiet, perhaps even friendly trading day in the German stock market: the downtrend in the Dax remains intact. Only sustainable prices above 14,078 points will end the trend that has prevailed since the annual high of 16,285 points on January 5, 2022.
There are also other important obstacles to be found in this area. On the other hand, the 38-day line is at 14,145 points, which indicates the short-term trend. The 50-day line, which indicates the medium-term trend, is also not far at 14,031 points, currently. If the DAX exceeds these signs in the coming trading days, the initial condition of the German stock market will relax significantly, according to technical analysis.
The above average trading volume is currently astounding. 110 million lots were traded on Thursday and 107 million papers were traded on Wednesday, the highest values of the past four weeks were reached.
For Technical Analyst Martin Utschneider from private bank Donner & Reuschel, this fact supports the downside trend in the chart. The proper rule for this is: “Size goes with trend – trend goes with volume.” The last two trading days ended in the red.
Technical reaction in the bond market
Prices in the bond market rose faster than stock prices. On the other hand, government bond yields decreased significantly. At the beginning of the week, the yield on ten-year government bonds was 3.2 percent, and on Friday this figure was 3.22 percent.
This development was similar to federal bonds with the same term. The value decreased from 1.18 percent to 0.941 percent Away. This is more than just stability.
For capital market expert Altmann, there are technical reasons for this, which can be seen in Bund Future. This forward contract relates to a fictitious ten-year Federal Reserve bond with a six percent coupon, thus allowing for bond trading. The price of futures contracts runs inversely to the evolution of the interest rate.
The Bund Future rose above its 30-day moving average for the first time since February. “For technically minded investors, this is an important and positive sign,” Altman explains. Three months ago, futures rose after that, and bond yields continued to fall accordingly.
Bitcoin back above $30.00
Investors are hoarding bitcoin again after the recent massive sell-off. The price of the cyber currency rose by nearly five percent to $30.501. Yesterday, Thursday, there were cycles under $27,000. However, in the past, all countermovements did not last long and were regularly sold out again.
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Punished SDax values are back on track to recover
On the stock exchange, there have been significant stock rebounds from SDax which was recently hit with heavy penalties. Those of the real estate company in stone It rebounded 19.1 percent after stagnating the day before due to the withdrawal of annual goals.
With a ten percent rebound, the stock Shop Apotheke Compensate for lower prices on Tuesday. Here, the introduction of e-prescription is still a controversial topic.
In addition, the titles of biofuel manufacturer continued Verbio They continued their recovery with a price jump of 8.6 per cent, although Federal Environment Minister Steffi Lemke intends to introduce a proposal to change the law in the near future in order to reduce the use of biofuels from cultivated plants.
With SMA, another SDax is up 13 percent after a weak price development due to a buy recommendation. Something similar is also inspired Evotech At MDax: After a week-long roller coaster ride, the price recovered here at the end of the week 10,8 percent.
Look at the individual values
Economy: Europe’s largest electronics retail chains, Media Markt and Saturn, are ditching the consequences of the Corona pandemic. The parent company of the two chains, Economy , recorded a significant increase in sales in the second quarter of the fiscal year 2021/22 thanks to the recovery in the branch business. Düsseldorf Holding Company confirmed its forecast for the current year. The stock rose 3.3 percent.
The stock price has nearly halved since June of last year, and Ceconomy Paper is down more than 20 percent since the start of the year.
Visco: The auto parts supplier is making good progress in collecting orders for the electric motor department. However, for the current second quarter, the company is assuming a more challenging environment than at the beginning of the year. However, the stock rose 7.6 percent.
Freenet: After a good start to the year, the mobile service provider’s shares are on the buy lists of investors. Newspapers included in MDax increased 1.6 percent. The company from Büdelsdorf in northern Germany scored improved points in profitability.