Summary of the session 14.12.2018
The DAX lost 0.54% on Friday’s session, which is not much given the initial decline in the index to around 10750 points. Eventually, the balance was positive throughout the week and amounted to +0.72%, the buyers managed to blur at least in part the negative pronunciation of the last strongly declining weekly candle. On Friday, a pack of PMI data from both Germany and the eurozone as a whole was published, in both cases slightly weaker readings, but still above the barrier of 50 points.
Among the DAX components, Fresenius recorded the best result, gaining 1.55%, while HeidelbergCement increased by 0.41%. The weakest performance was Continental, falling 2.35%, while Adidas lost 2.25%. The total number of falling companies exceeded the number of gaining companies listed on the stock exchange with the result of 463 to 245.
On Friday, the fall from the first part of the session cumulated around the support zone with 10750 points, the DAX reached the furthest S3 pivot. The subsequent upward movement was aimed at closing the gap, which was achieved around 4:30 p.m. The daily pivot remained untouched, but the message of the whole session, despite the apparent indecisiveness, is slightly positive, as the price remains above 10,800 points.
Today, buyers have been trying their strength from the beginning, but the efforts from the opening have already been erased. Quite strong support between daily and weekly pivots i.e. 10820-10800, another support is the local S1 level around Friday’s “low”. Overcoming today’s maximum could give fuel for the next test of 10,980 points, which has been blocking access to growths for several days.
In a broader perspective, breaking 11,000 points will be a strong buying signal from the target to the December pivot located just above 11,300 points.