DAX is one of the most popular indexes in the world. It is listed on the Frankfurt Stock Exchange. Virtually every day there is very high volatility which gives many trading opportunities.
Summary of the session 01/12/2017
The first session of the month (December) turned out to be bearish for the DAX index, which fell 1.2%. This year, starting from January, the first session of the month has always been bullish. The whole week was also not good for shares holders, a drop of over 1.5%.
On Friday, the PMI data for the industry, which should be considered very good, readings near the peaks from 2011 were published. Analysts expected such a turn of events, which is why the current value does not differ from forecasts (62.5). The PMI data for the entire euro area was also very good (60.1).
The opening was very high, the market easily beat from the bottom13,000 points . What’s more, the 200-hour average goes a bit higher, which DAX would have to break to continue upward movement. Not far from the Friday’s level of equilibrium, the first local resistance R1 – 13,073 is placed, which the market has already noticed. In case of going down to 12,940, buying may turn out to be a good idea
Monday’s high opening puts in doubt Friday declines, but on the other hand the sellers managed to push the price below the last consolidation minimum. This reminds me of the situation at the end of August, where also on the strong support the previous low was broken (only intraday), after which the market for the next month was rapidly growing.
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