Results are interpreted as buy, sell or hold signals, each with numeric ratings and summarized with an overall percentage buy or sell rating. After each calculation the program assigns a Buy, Sell, or Hold value with the study, depending on where the price lies in reference to the common interpretation of the study. For example, a price above its moving average is generally considered an upward trend or a buy. As a leading German index and home to major German stocks, including BMW, Deutsche Bank, VW and Siemens, the DAX 40 has always been closely followed by investors. The DAX 40 posted large gains, tracking other global indices during the 1995 dotcom bubble when stocks were led higher by U.S. technology stock valuations. In the five years between 1995 and 2000, the DAX Index gained 300%, rising to a record high of 8,000 from about 2,000.

For example, shares must be listed in the Prime Standard of the Deutsche Börse. In this exchange segment, companies must meet specific international transparency requirements. For example, the companies must present regular quarterly reports and annual https://g-markets.net/ financial statements as well as hold an annual analyst conference. In addition, ad hoc reports must be published in German and English. While it carries significant risk, Institutional and retail investors also tend to spread-bet on the DAX.

The weight of each individual security in the index is proportionate to the total market capitalization. In total, the companies listed in the DAX represent around 79 per cent of the German stock exchange value. For this reason, the DAX and its performance are also regarded as an indicator for the German share market as a whole. Many DAX constituents are large multinational companies that have a high level of significance to the global economy in addition to the German domestic market. The index represents 80% of the total market cap of listed German stock corporations, making it an important benchmark for domestic and international investors.

This option is popular among investors, as fees are lower with most mutual funds and ETFs than when buying shares from a single company. The DAX (the Deutscher Aktien Index or the GER40) is a stock market index that tracks the performance of the biggest companies trading on the Frankfurt Stock Exchange. It is the most important benchmark index in Germany and one of the most followed indices in Europe.

On November 18, 2021, the index reached its all-time high of 16,290.19. Highlights important summary options statistics to provide a forward looking indication of investors’ sentiment. Long term indicators fully support a continuation of the trend. What might happen from here is that the buyers will look to take out the February all-time high and eventually push the price above 14,000. In this regard, the bulls may look for a move to 14,500, where the 127.2% Fibonacci extension of the 2018 retracement is located.

1. Leveraged trading in foreign currency or off-exchange products on margin carries significant risk and may not be suitable for all investors.
2. The New Highs/Lows widget provides a snapshot of US stocks that have made or matched a new high or low price for a specific time period.
3. The DAX Stock Index was created in 1988 at an index value of 1,000 points.
4. DAX 40 tracks the 40 most liquid and largest German companies in terms of market cap.

The index is calculated on a second-by-second basis using Xetra prices. It serves as a barometer of the economic health of the German economy. Although it’s highly expensive, it attracts both traders currency trading indicators and investors. The DAX 30 index was first published on July 1, 1988, with a starting level of 1,163 points. The DAX index lost around 13% within one day due to the stock market crash on Wall Street.

DAX 40

As of July 2020, the DAX Stock Index value is at around 13,000 points. The index value depends on clear factors that allow traders to predict its price direction. Still, it’s one of the most stable financial instruments, as it mostly consists of German corporations. It’s a well-known fact that blue-chip stocks are mostly represented by German companies. A fade in enthusiasm for technology stocks led the index to the lowest levels seen since late 1995.

It’s similar to the Dow Jones Industrial Average (DJIA) in the United States in this sense. Another all-time high was reached on June 5, 2014, when the index rose above 10,000. Afterward, the index set a new maximum in 2015 when the central bank decided to print even more money. At the end of 2017 and the beginning of 2018, the index hit new highs. For the major indices on the site, this widget shows the percentage of stocks contained in the index that are above their 20-Day, 50-Day, 100-Day, 150-Day, and 200-Day Moving Averages. The Quote Overview page gives you a snapshot view for a specific index.

DAX Overview

According to Blackwell Global, the DAX 40 has a more than 90% correlation with major US stock indices and a 70% inverse correlation to the Euro. For instance, if the EUR/USD currency pair advances, the DAX index usually depreciates, and on the other hand, when the Euro depreciates against USD, the DAX moves up. This phenomenon  is used by traders to develop a successful trading strategy.

When prices are rising they are usually above the average. This is to be expected since the average includes data from the previous, lower priced days. As long as prices remain above the average there is strength in the market. To better understand the DAX and what it represents, it is a good idea to review what an index is.

DAX Index News Flow

Alternatively, a more positive global risk sentiment may yield a trading environment that is bullish for European indices. In this case, the bulls would look to push the DAX 30 towards 15,300 where the 127.2% Fibonacci extension resistance of the coronavirus-fueled market retracement sits. As a blue-chip stock market index, the DAX is very similar to the Dow Jones Industrial Average (DJIA), which also tracks large, publicly owned companies. They may be added or removed based on changes in their market cap. The free-float method of calculating market cap excludes locked-in shares, such as shares owned by a company’s executives.

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Trade up today – join thousands of traders who choose a mobile-first broker. The group also includes NAGA Global (CY) Ltd, with registered address at Nikokreontos 2, NICE DREAM, 6th floor, Flat/Office 601, 1066, Nicosia, Cyprus. NAGA Global (CY) Ltd is wholly owned by The NAGA Group AG. It would have continued surging if the Covid-19 pandemic didn’t hit the world at the end of 2019.

Softer guidance from mega-cap tech stocks could send stock markets back to square one, one analyst said. The DAX Stock Index is a very concentrated index holding only blue-chip companies that are very large and successful. It is very similar to the Dow Jones Industrial Average (DJIA), which is a price-weighted index that includes 30 very large U.S. companies.

Global stocks stabilize ahead of Big Tech earnings and as China pledges to support its COVID-hit economy

You can open both long and short trades depending on your price forecast. The idea of CFD trading is to predict the future asset’s price correctly and benefit from the difference between the opening and closing rates. In today’s article, we are going to provide a detailed look at what the DAX 40 represents, its history, how it’s calculated, and why it’s a popular asset to trade. Companies that are listed on the DAX are multinational companies that operate in multiple countries beyond just Germany. However, they play a large role in terms of making up a significant portion of Germany’s gross domestic product (GDP).

Stocks must have traded for the specified time period in order to be considered as a new High or Low. Most stock indexes impose various requirements and hurdles that need to be cleared to be eligible to be listed on the index. The DAX (Deutscher Aktien Index) is a stock index based out of Germany that represents the 30 biggest German companies that trade on the Frankfurt Exchange. The index value is calculated every second based on Xetra technology. When trading CFDs, you don’t own real assets; you speculate on the price difference.

In theory, the direction of the moving average (higher, lower or flat) indicates the trend of the market. Shorter averages are used to identify shorter-term trends. Many trading systems utilize moving averages as independent variables and market analysts frequently use moving averages to confirm technical breakouts. The Barchart Technical Opinion widget shows you today’s overally Barchart Opinion with general information on how to interpret the short and longer term signals. Unique to Barchart.com, Opinions analyzes a stock or commodity using 13 popular analytics in short-, medium- and long-term periods.