DAX is one of the most popular indices in the world. It is listed on the Frankfurt Stock Exchange. Every day there is a very high volatility giving many trading opportunities.
Summary of session
Yesterday stock exchange in Frankfurt was closed due to German Unification Day. On Friday we saw very high volatility on the stock exchanges in Europe. DAX index opened with a downward gap due to Deutsche Bank problems. This time the information was that several hedge funds withdraw their funds from the German bank. DB shares opened on Friday, 8% lower. In the afternoon, the situation has turned aroun. The market received information that DB has a chance to pay a much lower penalty for irregularities in the trading of securities in the United States in the period before the financial crisis. The Department of Justice imposed a fine on the bank in the amount of $14 billion. On Friday, an unofficial information that the penalty could be reduced to the amount of 5.4 billion USD caused that shares of the company recovered all the morning gap.
DAX defended the level of support at around 10,250 – 10,300 points. The index also managed to break the resistance level near 10,500 points. The next area of resistance is located around the 10,750 pts., highs from August and September.
Let’s see the situation on the intraday chart M15. The index after breaking pivot point moved toward the R1 around the 10,650 points. Currently, we have small correction, which arrived the region of local support 10,550 points. The graph in addition drew a pin bar formation.