DAX finds buyers at key support level
DAX Performance-Index (DAX) Technical Analysis Report for May 16, 2018 | by Techniquant Editorial Team
DAX ended Wednesday at 12996.33 gaining €26.29 (0.2%). Closing within the previous day's range, prices failed to decisively move past the prior day's trading range in a lackluster session. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (DAX as at May 16, 2018):
Wednesday's trading range was €70.23 (0.54%), that's below last trading month's daily average range of €109.09. Things look different on a weekly scale, where volatility is way below the markets average with the monthly volatility being slightly below average. Prices continued to consolidate within a tight trading range between 12918.29 and 13034.21 which it has been in now for the last trading week.
After trading as low as 12960.53 during the day, the market bounced off the key support level at 12961.05. The failure to close below the support could increase that levels importance as support going forward.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might accelerate should prices move above the close-by swing high at 13034.21 where further buy stops could get activated. Selling might speed up should prices move below the nearby swing low at 12918.29 where further sell stops could get triggered.
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 0.35% and CAC closing 0.26% higher. On the flipside the worst performer has been BEL20 closing -0.49% lower. Read more