DAX is one of the most popular indices in the world. It is listed on the Frankfurt Stock Exchange. Virtually every day there is very high volatility which gives an ample of trading opportunity.
Summary of session 16.03.2017
Yesterday we had three meetings of central banks, the Bank of Japan, the Swiss National Bank and the Bank of England. There has been no change in monetary policy parameters in bank after meetings statements. Markets still live with Wednesday’s meeting of Federal Reserve, which has increased federal funds rate, but not announced clearly a total of four increases in 2017, which was received as a dovish signal. From Wednesday we observed decline in value of the US currency and an improvement in sentiment in the equity markets.
DAX index gained 0.6% yesterday, but failed to break the resistance level at around 12,200 points., and on the graph appeared a formation of shooting star, which could herald a downward correction. The nearest support level is near the round area of 12000 points.
DAX index is just above level of support S1 in the vicinity of 12020 points. Breaking this zone will open way to 12,000 points and S2 close to 11965 points. On the other hand, going beyond today’s highs at around 12050 points will move DAX toward the pivot point in the vicinity of 12100 points.