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 08.06.2018
The German DAX index gained 0.63% on Friday and the whole week also ended in green, defending once again the average 200-session slightly above 12,700 points. Similarly, the situation looked on Wall Street, where the SP500 grew the sixth session in a row. Nevertheless, the German industrial production readings on Friday did not surprise, the decline was 1% with an expected increase of 0.4%; also the trade balance was lower than expected.
Among the components of the DAX index, the best result was recorded by Vonovia, which gained 1.50% and Henkel increased by 0.94%. The worst performers were the Deutsche Post, dropping as much as 4.65%, while Deutsche Lufthansa lost 2.46%. The indexes went down mainly in transport and telecommunications companies.
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DAX quite efficiently moved during the first bars of the Monday session from the direction point (Pivot) to the first local resistance of almost 100 pips higher. Thus, half of the average daily reach from the last two weeks has already been “used” by our German neighbours. At R1 – 12860, the seller appeared, with the aim of dropping the course to the area of at least one month’s pivot.
Meanwhile, looking at the daily interval, you can see that the buyers once again join the downward trend line, but only the exit above 12 930 points will allow the ending of the downward correction started in May. The price remains in the range of a candle with a large upper wick. It is worth noting that the current week will be the time of expiry of futures contracts on indices.