Yesterday's session was exemplary from the price action point of view. The descending trend line functioned as a resistance and the price bounced off that level. Bears were aggressive enough to create a strong momentum, pushing Dax lower till the session end. This strongly negative day was closed at 12 294.
- Resistance: 12 293, trend line
- Support: 12 189
Statistics for today
- Detailed statistics in the Statistical Application
Today's session hypothesis
This morning, Dax opened with a descending gap which is sized 94 points. No surprise that yesterday's bearish momentum prevailed and the priced gapped in the same direction. The probability of closing the gap today is relatively small. Although the price dropped down to touch the support zone of 12 189, it doesn't necessarily mean Dax can't continue even lower. We estimate the initial correction of yesterday's downfall followed by another bearish action.