DAX30 bulls regain control – 13,000 soon?

October 26, 2020

Source: Economic Events October 26, 2020 – Admiral Markets’ Forex Calendar

The German DAX made a weak impression last week on Thursday breaking below 12,500 points and going for an attack on the September lows at around 12,350 points, the last stop-over before the door opened down to 12,200 points, a region where we can also find the SMA(200) on a daily time-frame.

But, after testing the September lows, the DAX30 quickly reversed, pushed back to and above 12,500 points, establishing a potential bullish divergence on H1, pointing at least to diminishing bearish momentum.

The strong weekly close was mainly initiated after strong PMI’s from Germany, but also the Euro-Zone in general with strong Manufacturing numbers:

Germany: 58.0 against 55.0 estimated
EZ: 54.4 against 53.0 estimated

But Service disappointed:

Free Reports:

Get our Weekly Commitment of Traders Reports - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.

Sign Up for Our Stock Market Newsletter – Get updated on News, Charts & Rankings of Public Companies when you join our Stocks Newsletter

Germany: 48.9 against 49.4 estimated
EZ: 46.2 against 47.0 estimated

The German ifo Business Climate may point in a similar direction today, coming in better than expected. Market participants expect a dovish ECB on Thursday with a clear rhetoric towards an increase of the PEPP envelope from €1.35tn to €2.0tn at the December meeting. There are also signs suggesting a further cut of their deposit rate by the end of 2021. This could level the path up to 13,000 points in the days to come.

If bulls fail to sustainably recapture 12,700/730 points, the DAX faces the risk of another bearish stint down to 12,300/330 points and a test of the region around 12,200 points. Otherwise, a push back above 13,000 points in the days to come is a serious option:

Source: Admiral Markets MT5 with MT5SE Add-on DAX30 CFD Hourly chart (between October 05, 2020, to October 23, 2020). Accessed: October 23, 2020, at 10:00 PM GMT

Source: Admiral Markets MT5 with MT5SE Add-on DAX30 CFD Daily chart (between June 03, 2019, to October 23, 2020). Accessed: October 23, 2020, at 10:00 PM GMT. Please note: Past performance is not a reliable indicator of future results, or future performance.

In 2015, the value of the DAX30 CFD increased by 9.56%, in 2016, it increased by 6.87%, in 2017, it increased by 12.51%, in 2018, it fell by 18.26%, and in 2019, it increased by 26.44%, meaning that in five years, it was up by 34.2%.

Check out Admiral Markets’ most competitive conditions on the DAX30 CFD and start trading on the DAX30 CFD with a low 0.8 point spread offering during the main Xetra trading hours.

Discover the world’s #1 multi-asset platform

Admiral Markets offers professional traders the ability to trade with MetaTrader 5, allowing you to experience trading at a significantly higher, more rewarding level than with MetaTrader 4. Experience benefits such as the addition of the Market Heat Map, so you can compare various currency pairs to see which ones might be lucrative investments, access real-time trading data, and so much more. Click the banner below to start your FREE download of MT5!

Disclaimer: The given data provides additional information regarding all analysis, estimates, prognosis, forecasts or other similar assessments or information (hereinafter “Analysis”) published on the website of Admiral Markets. Before making any investment decisions please pay close attention to the following:

This is a marketing communication. The analysis is published for informative purposes only and is in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.
Any investment decision is made by each client alone whereas Admiral Markets shall not be responsible for any loss or damage arising from any such decision, whether or not based on the Analysis.
Each of the Analysis is prepared by an independent analyst (Jens Klatt, Professional Trader and Analyst, hereinafter “Author”) based on the Author’s personal estimations.
To ensure that the interests of the clients would be protected and objectivity of the Analysis would not be damaged Admiral Markets has established relevant internal procedures for prevention and management of conflicts of interest.
Whilst every reasonable effort is taken to ensure that all sources of the Analysis are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admiral Markets does not guarantee the accuracy or completeness of any information contained within the Analysis. The presented figures that refer to any past performance is not a reliable indicator of future results.
The contents of the Analysis should not be construed as an express or implied promise, guarantee or implication by Admiral Markets that the client shall profit from the strategies therein or that losses in connection therewith may or shall be limited.
Any kind of previous or modeled performance of financial instruments indicated within the Publication should not be construed as an express or implied promise, guarantee or implication by Admiral Markets for any future performance. The value of the financial instrument may both increase and decrease and the preservation of the asset value is not guaranteed.
The projections included in the Analysis may be subject to additional fees, taxes or other charges, depending on the subject of the Publication. The price list applicable to the services provided by Admiral Markets is publicly available from the website of Admiral Markets.

Leveraged products (including contracts for difference) are speculative in nature and may result in losses or profit. Before you start trading, you should make sure that you understand all the risks.

By Admiral Markets