European Open DAX rallies from key support European CPI up next

Asian Indices:

Australia's ASX 200 index rose by 31.8 points (0.42%) and currently trades at 7,601.00
Japan's Nikkei 225 index has risen by 249.59 points (0.71%) and currently trades at 35,160.79
Hong Kong's Hang Seng index has fallen by -224.07 points (-1.07%) and currently trades at 20,720.60
China's A50 Index has risen by 2.55 points (0.02%) and currently trades at 13,555.26

UK and Europe:

UK's FTSE 100 futures are currently up 27.5 points (0.36%), the cash market is currently estimated to open at 7,656.72
Euro STOXX 50 futures are currently up 16 points (0.42%), the cash market is currently estimated to open at 3,912.81
Germany's DAX futures are currently up 69 points (0.48%), the cash market is currently estimated to open at 14,431.03

US Futures:

DJI futures are currently up 153 points (0.44%)
S&P 500 futures are currently up 119.25 points (0.85%)
Nasdaq 100 futures are currently up 25.75 points (0.58%)

Asian equities were mostly higher overnight as they tracked sentiment from Wall Street. The tech sensitive Nikkei was the session’s leader and the ASX 200 has so far defied our call to mean revert. Instead is has tried to have another crack at its record high. A close above 7600 would be constructive, but if we see a break of yesterday’s low then it confirms the bearish reversal (bearish pinbar) and could trigger some mean reversion. A break above 7633 takes it to a new record high and assumes trend continuation.

DAX turns higher form support

Yesterday we were looking for the DAX to break of 14,200 resistance to signal its next leg higher, and it achieved that goal with style as it hit our initial target around 14,360. Furthermore, by opening at the session low and closing at the high of the day it was a breakout with conviction. However, yesterday’s chart was on the intraday chart, but we can now zoom out to the daily and look at the bigger picture.

We can see on the daily chart that its retracement from the 14,935 high found support at the monthly pivot point and 38.2% Fibonacci ratio. Whilst prices consolidated before the breakout, each candle was bullish to show demand was in the area, and prices have now broken higher from a corrective channel. Our bias remains bullish above 13,885 although yesterday’s low can also be used to fine-tune risk management. Initial target is 14,600, 14,800 then the highs just below 15,000.

FTSE: Market Internals

FTSE 350: 4268.5 (0.40%), 21 April 2022

6 stocks rose to a new 52-week high, 4 fell to new lows
231 (68.14%) stocks advanced, 108 (31.86%) stocks declined

Outperformers:

+7.03% - Darktrace PLC (DARK.L)
+7.02% - Jtc PLC (JTC.L)
+5.88% - CRH PLC (CRH.L)

Underperformers:

-5.38% - Ocado Group PLC (OCDO.L)
-5.47% - Centamin PLC (CEY.L)
-14.71% - Oxford BioMedica PLC (OXB.L)

Up Next (Times in GMT)

How to trade with City Index

You can easily trade with City Index by using these four easy steps:

Open an account, or log in if you’re already a customer

• Open an account in the UK
• Open an account in Australia
• Open an account in Singapore
Search for the company you want to trade in our award-winning platform
Choose your position and size, and your stop and limit levels
Place the trade

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.