DAX finds support at 100-day moving average
DAX Performance-Index (DAX) Technical Analysis Report for Aug 09, 2018 | by Techniquant Editorial Team
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 Candlestick Chart (DAX as at Aug 09, 2018):
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.
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.
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.
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.
With four out of the other five Major European Indices closing higher today, the ones that stand out on the positive side are TECDAX gaining 0.71% and BEL20 closing 0.65% higher. On the flipside the worst performer has been FTSE closing -0.45% lower. Read more