DAX is one of the most popular indexes in the world. It is listed on Frankfurt Stock Exchange. Virtually every day there is very high volatility which gives many trading opportunities.
Session Summary 17.05.2017
Stock market tried yesterday to shake off recent turmoil around President Donald Trump about which we wrote a lot yesterday. Although European stock markets did not perform very well at start of the session, but after US market opened, it managed to recover some of the losses. Today morning European time Japanese Nikkei index ended the session with a positive 0.22%. The S&P 500 index gained yesterday 0.37% in Europe, German DAX ended the session with -0.33%. However, the end of the week may prove to be successful also for European indices, due to the fast recovery of good sentiment on other markets.
Yesterday President Mario Draghi at the conference said that Eurozone crisis is already over. However, he did not refer more to monetary policy, and rather it is still expected that the QE program as well as interest rates will remain unchanged in this year. This is also confirmed by yesterday’s minutes of the ECB’s last meeting. In minutes you will find out that changes will be gradual and very careful.
The DAX index is at level of 12600 points. Its defence will allow to move again towards historic maxima near 12800 points. In turn, breaking this area will open the way to 12400 points. In short term the situation seems to be under control and the upward movement may continue. However, the market is heavily overbought and caution should be kept due to possibility of a stronger correction.
DAX Intraday
After opening futures market DAX index moved towards level of 12600 points, its defence will allow to move towards resistance R1 at around 12660 points. In turn, descent below 12600 points and pivot point near 12580 points will open the way to S1 support around 12515 points.
