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 25/06/2018
Monday’s session brought a sharp drop of the stock index by 2.46%, the worst session for shareholders since February 8 this year. The forward contract fell to around 12,250 points, i.e. levels not seen since April 2018.
Investors are afraid of the escalation of the trade war, and President Trump wants a ban on investing in US technology companies for many Chinese entities and blocking the export of certain technologies. In Europe, the chief economist of the ECB – Praet, remarked that “there is no decision yet to quash the QE program in December”.
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Among the components of the DAX index, there was no growing company, the best result was recorded by Beiersdorf and E.ON. The worst result was Infineon Technologies, which dropped as much as 5.41% and Deutsche Lufthansa lost 5.04%. The DAX Volatility, which measures the implied volatility of the DAX option, was up 23.57%, reaching a new 1-month high.
At the opening of Tuesday’s session, the index tries to rebound to the directional point but as long as the price stays below 12,350 points, the sell of is more likely to continue. A bit higher (12,375) is the monthly pivot level, which after yesterday’s break will serve as a resistance. The nearest local S1 support is relatively low at 12,155 points, which is why it is in doubt that it will keep yesterday “low”.
With a fall in prices, the volume of trade increased significantly to over 120,000 contracts, so the interest of players increased, and the number of opened positions increased by almost 10,000. Area of the largest volume in the lower fork of the Monday session, at 12,260.