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 26/06/2018
At Tuesday’s session there was no recovery, the index fell by 0.29% and deepened the last minimum. The bulls succeeded only in the second part of the session to counter the 12,300 points, as a result of strengthening in the US, which in will soon impose duties on European cars. In Europe, ECB member Coeure pointed out that rates will not be increased until the end of the summer of 2019 and the bank will closely follow trade wars and the instability of financial markets.
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Among the components of the DAX index, the best result was recorded by Beiersdorf, which gained 2.21% and E.ON increased by 1.70%. The worst result was ThyssenKrupp falling 2.65% while Deutsche Lufthansa lost 2.50%. The total number of falling companies exceeded the number of gaining listed on the Frankfurt Stock Exchange by 387 to 338.
Quotes in the middle of the week start from a bearish gap, so we doubt in yesterday’s strengthening. DAX is staying under the directional point the third session in row, which today is located at 12,260 points. The first local support at 12,185 points, which will be a test for demand, the next support point is the second monthly (MS2) pivot support 50 points lower at 12,125 and S2 ~ 12,100.
The situation from the daily chart looks quite interesting, where, after losing 12,550, the rate drops freely. The harmonic formation is important here (for a trained eye even two) with the “D” reaction point in the area of the aforementioned 12,100. Additionally, there is an unclosed gap on April 5, which was somehow the beginning of the spring rally.