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 29/05/2018
Tuesday’s session on the German trading floor wasn’t to successful for investors, the index fell by another 1.53%, this is the second strongly bearish session in May (new monthly low). It seems that the markets are discounting the possibility of leaving Italy from the euro zone or even insolvency, CDS and bond yields are rising, while the Italian FTSE MIB stock market index is on the 9-month low.
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Among the components of the DAX index, the best result was recorded by Vonovia, which gained 0.89% and ThyssenKrupp increased by 0.48%. The worst performers were: Deutsche Bank, 4.60% and Commerzbank, loss 4.06%. The indexes were pulling down the company mainly from the insurance, media and construction sectors.
A particularly visible strong sell-off at the beginning of yesterday’s session brought the index to the levels of 12,600 points, which is the average area of 200 DMA. However, today there is some recovery, with the DAX still below the level of 12,680.
A plus for buyers can be the brekaout above the downward trend line extended on weekly highs. Such a situation, combined with a more permanent strike over Pivot would be an invitation to fight for the continuation of growth (construction of W1 candle shade), alternatively local support only at S1 – 12,520.