Summary of the session 14/09/2018
During the last session main index from Frankfurt grown 0.57% and in the whole week it was 1.37%. The recovery over the week has abolished half of the decline from the previous W1 candle, reaching a maximum of 12,130 points in the highest level. Among the European indices, the weakest was WIG, -1.12%, while the best was the Russian RTS, which increased in 5 sessions by as much as 4.21%.
Among the components of the DAX index, the best result was recorded by BAYER, which gained 2.38%, while Volkswagen increased by 2.29%. The worst result had Henkel falling 1.12% and Merck lost 1.08%. The total number of growing companies exceeded the number of losers listed on the Frankfurt Stock Exchange at 444 to 234.
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The lower opening of today’s session gives advantage to bears, DAX is also trading below the daily pivot (12,110) after 9:00 am. In addition, a fall below the trendline extended from the bottom of September 10th does not look appealing. Looking a bit wider, however, you can see the preserved positive structure of highs and lows and over 12,030 bulls can feel safe. It is in this area that there is a weekly pivot, and a bit higher – 12 050 – the local S2 support that has already been tested.
At the D1 interval this reflection looks inviting, but it should still be considered as a correction. The external reaction point of the harmonic formation – 127.2% was quite accurate and the Tuesday session was a confirmation of growth. The first target for the formation was implemented, now it may be more difficult and the next zone is quite narrow located at 12 225/50. From the bottom we have support, the upward trend line is drawn on the minimas of February and June 2016.