Market Pulse ///
The author uses the VolFix trading and analytics platform.
Main methodology — Volume Analysis / Price Action / Market Profile.
Volume Area / RES / SUP / VWAP / Open Interest / Delta Hist. / Volume Hist. +
Key volume levels and important upcoming economic calendar events for traders of the DAX index.
Tuesday and Thursday are the most important days this week for DAX traders.
Tuesday, 3 November
- Australia’s interest rate decision (previous: 4.60%; current rate: 4.85%) !!!
- US congressional elections.
- Quarterly earnings from Bayer (BAYGn).
Thursday, 5 November
- UK interest rate decision (previous: 3.75%) !!!
- Quarterly earnings from Deutsche Telekom AG (DTEGn).
- Quarterly earnings from Siemens Healthineers AG (SHLG).
- Quarterly earnings from Rheinmetall AG (RHMG).
- Quarterly earnings from Commerzbank AG (CBKG).
The chart above shows important volume levels from last week and this week. Note the large-trade filters, displayed as red and green circles on the chart.
From 26 to 29 October, buying activity dominated, as confirmed by the Big Trades filters. These levels are marked as volume-based support: 25520–25600 / 25650–25740 / 25800.
Towards the close of the trading session on 29 October, selling activity in the overbought zone established a resistance range.
On 30 October, traders most likely took partial profits ahead of the weekend, triggering a price correction to VWAP at 25840. The range of sell trades that day is marked as volume-based resistance at 26100–26170.
On 2 November, traders resumed buying but could not break through resistance.
Week Volume: 25860–26030
Resistance: 26100–26170
Support: 25520–25600 / 25650–25740 / 25800
VWAP: 25840
The chart below shows the price correlation between DAX and FESX for the December contracts.
Note that the correlation between the two indices has changed since 13 October. As of 3 November, FESX has yet to break above its 13 October high, having tested that level around five times, and is trading closer to its contract low. Meanwhile, the DAX index continued to make new highs and is trading closer to the highs of its December contract trading range.
