DAX finds support at 100-day moving average


DAX Index (DAX) Technical Analysis Report for Aug 09, 2018 [1 min read]
Highlights
DAX pushes through key resistance level
DAX closes above its opening price after recovering from early selling pressure
DAX pushes through 20-day moving average
DAX finds support at 100-day moving average
DAX ends the day on a bullish note closing near the high of the day
TQ Sentiment
Report Sentiment: 50% Bullish
Technical Forecast:
Overview

DAX finished Thursday at 12676.11 gaining €42.57 (0.34%). Today's closing price of 12676.11 marks the highest close since August 1st. Trading up to €45.80 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices failed to decisively move past the prior day's trading range. Ending with a strong close near the high of the day sets a bullish note for the next session.

Daily chart for DAX
Volatility

Thursday's trading range was €119.18 (0.94%), that's slightly above last trading month's daily average range of €118.25. Things look different on a weekly scale, where volatility is below the markets average with the monthly volatility being below average. Prices continued to consolidate within a tight trading range between 12538.35 and 12738.53 which it has been in now for the last trading week.

Support/Resistance

Breaking through the key resistance level at 12639.79 today, it is now likely to act as support going forward. Prices are trading close to the key resistance level at 12778.96. After having been unable to move lower than 12586.23 in the previous session, the stock index found buyers again around the same price level today at 12577.34. After trading as low as 12577.34 during the day, the index found support at the 100-day moving average at 12592.52.

Trend

Though DAX Index is currently in a short-term down trend, this could just be a correction, as the medium and long term trends are both positive. DAX managed to break above the 20-day moving average at 12666.14 today for the first time since August 7th.

Order Flow

Buying might speed up should prices move above the nearby swing high at 12738.53 where further buy stops could get triggered. Selling might accelerate should prices move below the close-by swing low at 12538.35 where further sell stops could get activated.

Conclusion

While classical technical analysis indicates a neutral sentiment for the next trading day, our quantitative statistics show a different picture being bullish.

Market Conditions for DAX Index
Condition Forecast Direction Win Avg Worst Best Events
Close to S1 Support TQ Pro Members Only
Up Close near high of period TQ Pro Members Only
Bullish Intraday Reversal TQ Pro Members Only
Close near high of period TQ Pro Members Only
Close to Swing Low TQ Pro Members Only
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