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.
Session Summary 06.06.2017
The beginning of the week brings bad sentiment on the markets and there are many reasons for such an atmosphere. During weekend once again we had a terrorist attack on the Isles. Saudi Arabia and several countries in that region have broken diplomatic relations with Qatar accusing him for supporting terrorism. There is also European Central Bank meeting to be held this Thursday which will probably make no change in monetary policy parameters, but investors may be afraid that forward guidance will be changed, which has so far been set to take every action to restore inflation to around 2% in the medium term, the ECB’s inflation target. Although there is no indication at this time – for change of this rhetoric – and Mario Draghi himself announced last week that Eurozone still needs to be supported by loose monetary policy. Today we saw data on German production, which turned out to be weaker than forecasts on a monthly basis as well as year on year.
Yesterday morning Nikkei closed at minus 0.95%. DAX index was down 1.04% and the S&P 500 lost 0.28%. German index has reversed from its historical maxima of around 12878 points and is heading for support near 12600 points, which can stop supply and return to around 12800 points. Breaking this area will open the way to next level of support near 12400 points.
DAX Intraday
After opening the cash market we have timid attempts to move up. Over pivot point around 12700 pts. It will open the way to R1 near 12750 points. In turn, descent below today’s minima around 12650 points can give bearish signal to move to S1 near 12615 points.
Key data for the DAX index
11:00 – Gross Domestic Product, fin. In the euro zone
