DAX is one of the most popular indexes in the world. It is listed on the Frankfurt Stock Exchange. Virtually every day there is a very high volatility which gives many trading opportunities.
Session Summary 24.05.2017
European stocks yesterday were dominated by decreases, though the declines were not significant. Moods have been destroyed by news about Italian company FCA, against which the US government wants to open legal process regarding gas fumes. The FCA lost 0.5% yesterday. Also other automotive companies ended the session on downside. Daimler closed -1.6% and was the weakest company in DAX index. German index ended session with a score of -0.13%.
USA indexes were much better. The S&P 500 yesterday set new historic highs, gaining 0.25% and closing at around 2400 points. Good sentiment prevailed despite the fact that Fed is ready to continue raising interest rates and reducing its balance sheet total if US economic projections prove themselves. Such conclusions can be drawn from yesterday’s FOMC minutes.
Today number one event is the OPEC meeting on further cuts in oil production. Market is getting information that cartel is ready to extend for a further half a year mining restrictions, which as it will be confirmed will be positive information for the markets.
The index is still above 12600 points, which is a bullish signal and the next level is the historical high around 12800 points. Also on daily chart you can see formation of an hammer, which also can predict growth.
After opening futures market DAX index moved up strongly, breaking through R2 resistance around 12690 points, which opened the way to R3 near 12720 points.
Key data for the DAX index
All day – OPEC meeting