DAX is one of the most popular indexes in the world. Listed on the Frankfurt Stock Exchange. Virtually every day there is a very high volatility which gives many trading opportunities.
Session Summary 10.11.2017
Friday’s session complied with the last week’s sentiment , declines reached 0.42%. Weekly index was down more than 2.4%. This time the Friday rallies encountered resistance at 13,200 points and the entire session formed a descending triangle, which is a sign of a continuation of declines.
Among the components of the DAX index, Deutsche Bank AG was the biggest gainer + 3.14% and Adidas AG gained 3.13%. Pro Sieben fell the most – 3.05%, while Merck was down 1.88%.
The Monday session opened near the Pivot Point level and just after 9 am the market is trying to break out from the triangle. A successful attack should result in a test of the first local resistance at 13,191 and further the Friday’s maximum.
A failed attack attempt should force the bulls to retreat to the bottom of the triangle and continue move to support at 13 082.
Beginning of new week is a good time to check the weekly candle, which in this case appears to be strong bearish and engulfs the previous bullish one. This engulfing is a classic bearish formation, with the first point of reaction at 13 200.