DAX30 CFD bears regain control – focus on 11,550

By Admiral Markets

Source: Economic Events August 12, 2019 – Admiral Markets’ Forex Calendar

The week kicks off with a very thin economic calendar, however, the latest developments and escalations in the trade dispute between the US and China can deliver enough potential fuel for volatility.

Still, we want to focus on the technical side in the DAX30 CFD. After the German index failed to take on further momentum on the upside into the last weekly close, a line in the sand on the upside holds at around 11,850 points today.

Should a break higher be initiated, further gains up to 12,000/030 points seem likely, even though we consider the technical picture on H1 to favour the short-side as long as we trade below 12,250 points.

In general, if after taking a breath from last Tuesday onwards, DAX30 CFD bears start to regain control and another stint lower seems a serious option. Here the key level, in our opinion, is around 11,550 points: a break lower leaves the German index vulnerable to a further drop with an initial target around 11,250 points, the region around the March lows:

Source: Admiral Markets MT5 with MT5-SE Add-on DAX30 CFD Hourly chart (between July 23, 2019, to August 9, 2019). Accessed: August 9, 2019, at 10:00pm GMT

Source: Admiral Markets MT5 with MT5-SE Add-on DAX30 CFD daily chart (between May 2, 2018, to August 9, 2019). Accessed: August 9, 2019, at 10:00pm GMT – Please note: Past performance is not a reliable indicator of future results, or future performance.

In 2014, the value of the DAX30 CFD increased by 2.65%, in 2015, it 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%, meaning that after five years, it was up by 10.5%.

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