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.
Summary of the session 20/07/2018
The German DAX fell on Friday by nearly 1% on a slightly increased volume, while in the whole week the loss was 0.39% and the quotations again turned towards 12,500 points. At the same time SP500 almost did not change its value (-0.08%), ending the week on nearly 2,800 points. On Friday, data from the German economy did not surprise, PPI m/m amounted to 0.3%, in line with analysts’ expectations.
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Among the components of the DAX index, the best result was recorded by RWE, which gained 1.33%, while Beiersdorf increased by 0.67%. The worst result was ThyssenKrupp, dropping as much as 3.06%, and Volkswagen was down 2.26%. The total number of declining companies outnumbered the number of gaining listed on the Frankfurt Stock Exchange by 447 to 249.
On Friday, the DAX with two strong waves fell in the area of 12,500 points to the monthly pivot, which was negation of the bullish attack from the 17th of July. In addition, today’s opening under the directional level (12,560) puts the demand side in a more difficult situation. The nearest S1 support is located at 12,425 points and it seems that the market is going there first. Resistance is respectively the above daily pivot and above R1 – 12,668.
In a wider layout, you can see how the market penetrated the DMA 200 channel, first the lower limit and then the upper one, additionally DAX closed the gap that took place in mid-June. Thus zone 12 750-12650 grows to a strong medium-term resistance in the next days and weeks. Significant support slightly below 12,400 points.