Summary of the session 23/08/2018
Thursday’s session was calm, but the index fell by 0.16%, remaining above 12,350 points. Yesterday we got to know the PMI data from Germany: 56.1pkt for production and 55.2 for services. The authors of the Markit study believe that the third quarter of GDP may increase by 0.4% for the entire euro area. After the ECB meeting, Jens Weidmann, president of the Bundesbank, said that “the process of moving out of an expansive monetary policy should begin.”
Among the components of the DAX index, the best result was recorded by Beiersdorf, which gained 1.41% and RWE increased by 1.35%. The worst result was Continental dropping 4.29% while BAYER lost 1.77%. The total number of falling companies outnumbered the number of companies gaining listed on the Frankfurt Stock Exchange from 364 to 327.
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Quotations for few days remain closed in a narrow range, creating a triangle that, after an upward boost from the beginning of the week, favors bulls. On the opening of today’s session, the DAX is located above the 12.370 point and key volume support. From above, the first local resistance is S1 – 12 395, which coincides with the upper limit of the triangle, its forcing will mean test of 12 420.
Looking at the daily interval you can see that the price is already a step from the broken support zone 12 450-12 480, which now should serve as a resistance, but for now, a positive sequence of white candles is continued, so bulls can feel safe up to 12,300 points.