Summary of the session August 31, 2018
The German DAX lost over 1% on Friday’s session, while in the whole month the balance of the Frankfurt Stock Exchange is close to -3.5 per cent. From the initial 12,800 points, the index fell at some point to 12,150pts, to end August around 12,400. On Friday, we also saw data on retail sales which shrunk by 0.4% y / y. forecasted -0.1%; additionally, the revision for the previous month was down from 1.2% to 0.9%.
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Among the components of the DAX index, the best result was recorded by Linde, which gained 0.15%; and is the only company which gained in the last session of August. The worst performers were Deutsche Lufthansa, falling 3.81%, while Continental lost 1.89%. The total number of losing companies exceeded the number of gaining listed on the Stock Exchange by 450 to 234.
September welcomed us with a neutral opening, Friday’s declines, which accelerated in the final phase of the session, were not negated. The market is facing the downward trend line in the forming wedge, level 12 345 plays a significant role here. The directional point for today is 12,357, while the largest demand test should take place around 50 points higher, where there is a weekly and monthly pivot cluster and daily R1. The first important support at S1 – 12,280.
Looking at the daily chart, it turns out that on the Friday session the index beat important support, moving away from 12,400 points, which was a reaction to the rejection of the 200-day average. Meanwhile, bulls can still defend themselves at 61.8%, (12,290), the fiasco at this point could lead to a test of minimum from 2 weeks ago. Today, we are still awaiting the publication of Manufacturing PMI data from Germany. It is also worth noting that both Canada and the US do not trade today.