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 10/04/2018
Tuesday’s session brought a continuation of growth, the DAX index grew by 1.11%, largely due to the gigantic gap at the opening of quotations. The morning speech of Chinese President Xi Jinping, in which he suggested the willingness to end the dispute with the US, was positively received by the market, DAX found itself on levels not seen since mid-March.
Among the components of the DAX index, the best result was recorded by BAYER, which gained 4.73% and Volkswagen increased by 4.46%. The worst performers were Henkel, which fell 0.95%, and Vonovia was down 0.72%.
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The opening of the session was down a bit, but before 9:00 the quotes reached the directional point (DP). We should pay attention to the narrowly spaced pivot lines, this is due to narrowing volatility. Highest placed S3 support is “only” by 140 pips while the average daily range from 10 sessions exceeds 200 pips. This means a possible strong directional trend.
I would read the descent below 12,330 as an attempt to close Tuesday’s gap, while the growth above yesterday’s “high” is an invitation to continue the upward movement. However, as long as the price stays below 12 385, there is a higher probability of decreases.