The session yesterday opened with a descending gap and the closing probabilities were narrow. We initially anticipated the continuation to the downside to retest 13 018 as that was the nearest support. It turned out that sellers were even stronger and took Dax lower to hit 12 940. This is where the price reversed prudently and the early sell scenario has been fulfilled. Dax confidently jumped back up to cover the losses and even closed in green territory.
- Resistance: 13 235, 13 386
- Support: 13 120
Statistics for today
- Detailed statistics in the Statistical Application
- The statistical probability of closing the gap is only 39%
- The statistical probability of breaking the previous low is only 12%
- 16:00 USA - ISM Non-Manufacturing PMI
Today's session hypothesis
Dax opens at 13 200 which is the VPOC of Friday and we have an ascending gap sized 40 points. Considering the price is now in the clearly defined zone, we incline to close the gap despite the low statistical probabilities. However, we need to carefully monitor the zone between 13 119 - 13 235 and if Dax breaks out to either side, we'd look to tag along in that direction. We prefer the long scenario targeting 13 386 in the upcoming days.