Session summary 02.04.2019
The German DAX continues its good streak, yesterday’s increase reached 0.62% and is traded above 11,800 points. So the turning of the months is superb for the index and all those who foretold drops must admit the mistake because today the German DAX price goes above the March highs. This is a reaction to the solution to the seemingly controversial trade issues between the USA and China. Emptiness in the macro calendar is also an element that sustains the current trend.
Among the DAX components, Continental recorded the best result with 2.31%, while Bayerische Motoren Werke increased by 2.22%. Henkel’s had the weakest performance -1.99%, while Deutsche Post lost 1.46%. The total number of growth companies exceeded the number of losing companies listed on the Frankfurt Stock Exchange with a result of 443 to 260.
DAX breaks resistance like straws, yesterday it reached level R1 11 795 in the late afternoon, where there were a small hesitation and correction in the form of 30 points, but unnoticeable from the perspective of e.g. m30. In the overnight session, the index reached the first resistance of 11,840 points in April, which should at least cause a halt (in the perspective of the next sessions). On the other hand, the March resistance was broken, which threatens to set new records and squeeze short positions.
The whole price action takes place just above the 200 session average. Bulls have already reached their goal, i.e. new price extremes, and now it depends on the condition of the bears how quickly we reach 12,000 points.
The trend marker is the upward trend line which yesterday acted as a dynamic support. Today the situation is quite different because the market is already very different from LT and daily pivot. In the morning, the course attacks the local R1 level of 11 870 points and goes to the next one, i.e. 11 925 points. From the ADR point of view, such movement is possible. First support in the area of 11 830/20 and lower DP – 11 770 points.