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 02/02/2018
Friday’s session on the German index deepened declines, the drop was -1.68%, it was the fifth consecutive downward session, while the entire week the price dropped by over 4%. These few quick sessions brought DAX to a region well below 13k points not seen since September last year, what’s interesting, you can now buy index on average price from last 200 sessions. It was also the worst week for Wall Street for two years.
Among the components of the DAX index, the best result was recorded by Munchener Ruck, which gained only 0.13%. The worst performers were Deutsche Bank, which fell 6.21%, Linde lost 3.20% and Infineon Technologies was down 3.16%.
The new week starts with a bearish gap, nearly 70 points, it is a derivative of a weak opening overseas, DAX comes down below 12,700 points, the level of DS1 support first time was defended . After 9:00 the market tries again to test the morning low, a successful defense should lead to an increase in the region of DP and POC (the largest volume of the Friday session).
In broader terms, the quotations took the shape of the expanding triangle, the so-called formation of a megaphone, with a goal for the longs in the middle of its height. In the lower part there is also an average of 200 sessions, an important moment on the historical chart of DAX index.
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We had a similar layout in August last year, when after testing the market twice, the market went to the historic high. On the other hand, for some players, breaking down 12,500 would be activation of the double-top game.