DAX is one of the most popular indexes in the world. It is listed on the Frankfurt Stock Exchange. Virtually daily there is a very large volatility that gives many trading opportunities.
Summary of the session 06/07/2018
During Friday’s session the index rose by 0.26% on increased volume (similarly as on Thursday), it was a successful crowning of the week in which DAX gained 1.55%. After a positive surprise with orders in industry, on Friday it was reported that the production of the German economy increased in May 2.6% against expectations at 0.3%; data for May have been revised down to -1.3%.
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Among the components of the DAX index, the best result was recorded by RWE, which gained 2.84%, while the Deutsche Bank company increased by 2.51%. The worst result was for Daimler – down 0.79% and Continental was down 0.57%. The total number of growth companies exceeded the number of losing 438 to 285 on the Frankfurt Stock Exchange.
The new DAX week starts with an opening gap close to 60 points, the index was not only above the prices from Friday but also on the highest level in the current upward movement started last week. In addition, the price has quite significantly overtaken the July pivot level at 12,515 points, but on the other hand a significant deviation already on Monday morning can be an incentive to catch bulls in a trap. The more so because the first local resistance is already near 12,550 – R1.
R2- 12610, R1- 12550, DP – 12 480, S1- 12 420, S2- 12 350
Looking at the higher time interval, it can be seen that the harmonic formation I mentioned at 12 100 points is realized. What’s more, the price reached the first target level on the Friday session, the “B” point of the entire formation located at 12,500 points. At your fingertips is already the average DMA 200 (green), which will tell a lot about the strength of demand in this place. Strong support zone at 12320-12 300 points.