Dax daily: 08 Jan 2020

Although we've had a low probability of the gap closure, we highlighted yesterday that the current market structure suggests for the gap closure and that is exactly what happened. That's a great example to pay attention to the overall context of the price development. After the gap was closed, Dax bounced back to the upside, retested the prices above 13 235 but didn't stay there and the close of the day was printed at 13 200.

Important zones

  • Resistance:  13 235, 13 386
  • Support: 12 880

Statistics for today

Macroeconomic releases

  • NIL

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Today's session hypothesis

This Wednesday, Dax opened with a descending gap below 13 118 support and immediately took the bullish momentum. What we need to see now is whether bears step in to take the price lower in the initial gap direction or whether the price ranges between 13 118 and 13 235. This is a vital hint we need to monitor today. Later in the day, Dax could react to the risk sentiment in relation to the development in Iran and Iraq and after Trump's speech related to a situation there.

 

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