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 24/07/2018
The German DAX scored a good session with an increase of 1.12%, such a dynamic rise was not observed since July 5. The buyers are close to negating the weekly pinbar, and all this with the upward accompaniment of Wall Street, where the SP500 has breached the monthly maximums.
PMI data on production from Germany and the euro zone surprised to the upside, the index in the largest economy in Europe increased to 57.3 points from 55.9 previously. A reading from the services sector, which amounted to 54.4, was in line with the forecasts; here, the important information was the revision up of data for the previous month.
Among the components of the DAX index, the best result was recorded by Commerzbank, which gained 3.44%, while in the meantime Volkswagen increased by 2.81%. The worst result was E.ON falling 1.37% and Deutsche Telekom was below 0.66%.
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On Tuesday Dax reached the furthest daily resistance R3 and the first weekly resistance just above 12,700 points. However, it didn’t manage to stay above this barrier, and some players used high levels to sell. Nevertheless, today the opening falls above the 12,660 directional point and also near the closing of a large white candle from 10:30, which should at least initially support bulls.
After breaking the short-term trend line (blue), we can see the movement towards the nearest resistance R1 – 12 750; support quite distant due to the increasing volatility in the area of 12,585-12 575. The course fell below the volume resistance, the area of the greatest interest of players (POC) is 12,710; volume-weighted average – 12,685.