DAX is one of the most popular indexes in the world. It is listed on the Frankfurt Stock Exchange. Virtually daily there is a very large volatility that gives many trading opportunities.
DAX gained an impressive 1.68% yesterday, mainly in response to the ECB statement, the dovish receipt of the message significantly raised stock prices. The last such a strong increase took place on April 5, when stock exchange bulls moved the index higher by 2.9%. Meanwhile, DAX defeated the resistance at 13,000 points and reached at high-speed May highs. The situation is also interesting in the context of the so-called day of the “three witches”, now most of the players have moved to the September series.
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Among the components of the DAX index, the best result was recorded by E.ON, which gained 3.36%, while RWE rose by 3.24%. The worst result was – Commerzbank fell 1.93% and Covestro lost 0.56%.
Once again, the monthly pivot (12,800) turned out to be undefeated for the bears, what’s more, the rally which occurred after 14 o’clock has raised the index over the monthly resistance of MR1 (red line). It should now be used as a support, in addition to this, there is also a daily DP area, which confirms the importance of this area.
A significant increase in volatility caused the extension of the pivot lines, even despite the neutral opening, one hundred point move is needed for the first support and almost 150 for local resistance R1.