Low volatility on the Warsaw trading floor
As expected and in the usual scenario when U.S. markets are closed, the session ended with modest changes in the main indices. The WIG20 gained 0.17 percent while the broad market index WIG rose 0.35 percent.
Trading volume across the market did not exceed 1.51 billion zlotys, of which about 1.21 billion zlotys were on the WIG20.
In the case of the blue‑chip basket, one can speak of a handout, which in terms of volume was the quietest of the entire week. In fact, volume in the index was a third less than on Thursday’s session, so the market modelled a calm opportunity to settle down.
In this context, the market’s breathing and the leaders of demand and supply camps matter less, because the handout was simply a waiting game.
First week of July successful for WIG20
Nevertheless, Friday’s rise enlarged WIG20’s weekly gain to 2.87 percent, translating into a rise that is only a fraction smaller than June’s average decline.
The last element directly ties into the technical picture, where bulls managed to build a counterweight to earlier failures around 3,700 points and a base for a return to the fight to overcome psychological resistance.
However, it should be assumed that any move of WIG20 above 3,700 points, especially the durability of the breakout at resistance and a new bull market peak, will largely depend on the condition of the zloty and the continuation of the bull market in the surrounding environment.
There is no doubt that the finished week – especially Thursday’s session, which decided the bulls’ success – was played in the context of the Polish currency’s rebound after the last discount and the German DAX breaking out of consolidation to a new bull market peak and record highs.
