DAX is one of the most popular indexes in the world. It is listed on the Frankfurt Stock Exchange. Virtually every day there is very high volatility which gives many trading opportunities.
Session Summary 26.07.2017
Yesterday’s event was the FOMC meeting. However, the Federal Reserve did not surprise investors with anything special. It was decided to leave main interest rate unchanged in the range of 1.00 to 1.25 percent. In addition, the Fed announced that the reduction in the Reserve’s portfolio of assets should begin “relatively soon”. The stock markets have not reacted in any way to this decision. Any third increase this year is expected at the December meeting.
Today Nikkei closed the session with 0.12%. Yesterday the S&P 500 ended the day in practically the same place with a score of 0.03%. The DAX Index ended with 0.33%. The German index was established on 20 June this year. Historical maxima around 12.951 points. However, he has not been able to stay on this level for too long. Since then he has lost about 5%. It is hard to talk about bear market (according to many sources the bear market starts with drops of at least 20%) but surely there is a stronger correlation. Time will tell whether the correction is going to grow, or maybe it will be an opportunity to move further up? It is impossible to hide that the market is heavily redeemed and even when it comes to rebound, this movement will be subject to considerable risk. However, the nearest end of correction signals can be found on support around 12.200 points. At this point on the daily chart appeared hammer formation, which may also suggest a rebound in the near future. The nearest resistance level is 12.400 points.
After opening the futures market, the DAX index rebounded from the pivot point at around 12.280 points. And is heading towards R1 near 12.320 points. Any descent below the pivot point will open the way to S1 at around 12.220 points.
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