Market News & Analysis
DAX Extends Gains On US Stimulus Package Hopes
Fiona Cincotta March 25, 2020 4:15 PM
We still need to see an improvement in coronavirus numbers and a peaking in cases in US before the rally really takes off. Until then we can expect to see relief rally days but also days when the data is just plain scary and the market sells off. Fast forward 2 months from here and we expect to see some phenomenal buying opportunities.
The focus will now shift to German IFO Survey for March. The sentiment data is not expected to be pretty, as business confidence collapses; the very measures that governments are implementing to protect the public from the killer virus results in demand for goods and services evaporating. The preliminary reading last week showed a big decline to 87.7 from 96, the revised number could show another drop.
Levels to watch
The Dax has jumped 1.8% on the open and is trading at 9910. On the 4 hour chart, it broke above its 50 sma yesterday and has made an attempt on 100 sma at 9971. A move above tis level could see more bulls jump in.
Immediate resistance can be seen at 9971 (100 sma) prior to 9995 (today’s high so far) prior to 10965 (high 11th March).
Support can be seen at 9541 (today’s low) prior to 8870 (50 sma) and 7970 (low 19th March).
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
GAIN Capital Singapore Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the GAIN Capital group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), GAIN Capital Singapore Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact GAIN Capital Singapore Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither GAIN Capital Singapore Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
GAIN Capital Singapore Pte. Ltd. is not under any obligation to update this report.
Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.
Cryptocurrencies are not legal tender currency and trading of derivatives on Cryptocurrencies are currently not covered under any regulatory regime in Singapore. Consequently, investors should be aware they do not have protection under the Securities and Futures Act (Cap. 289). Please ensure that you are fully aware of the risks.