Dax daily: 19 May 2020

Sellers were quickly pushed away by strong bulls. The positive sentiment yesterday saw zero correction on Dax and the price even broke out the resistance at 10 999, moving away from the range. Dax then stalled at 11 108. Is that just a coincidence? We have marked this level as the fair value on 30 April, having the biggest volume of orders. As we witness again, market participants respect these limits.

Important zones

  • Resistance: 11 262
  • Support: 11 000

Statistics for today

Macroeconomic releases

  • 11:00 CEST - German ZEW Economic Sentiment

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Today's session hypothesis

Buyers were really powerful yesterday and chances are they are likely to continue. The next resistance and our target zone are up at 11 262 and we're returning to April highs. Looking back at how bullish traders sliced through the butter, our only idea is to see further continuation upwards after some time. The positive sentiment was well correlated to the US indices too. The range which was left behind has been relatively strong however and it's important to bear in mind that correction below 11 000 might occur.

 

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