Dax daily: 22 May 2020

Yesterday's session hasn't brought any surprises. Dax consolidated in the range, without a clear direction. We cannot say it was due to lower activity of the markets participants as there was a public holiday in Germany, but the fact has it that the volatility resembled any regular price range of any normal trading day. The gap hasn't been closed by just a few points and the open price for today fell down 10 898 overnight.

Important zones

  • Resistance: 11 000
  • Support: 10 523

Statistics for today

Macroeconomic releases

  • 13:30 CEST - ECB Monetary Policy Meeting Accounts

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Today's session hypothesis

We have an interesting situation today. After a whole week, Dax fell low below the trading range and corrects Monday's bull run. The price is below the resistance of 11 000 and we expect the retest of this level. The strong descending gap opening signifies a clear bearish signal and chances are the global stock markets are bracing for another wave of sell-offs. The question if and when is, however, still open. The most important support zone lays lower at 10 523 which is relatively far away for Friday's price action.

 

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