DAX30 back below 13,000 – will US tech drive the German index lower?

By Admiral Markets

Source: Economic Events July 27, 2020 – Admiral Markets’ Forex Calendar

With the Nasdaq100 closing down more than 2% on Thursday, posting its worst day since June 26 after the “Big 5” around Apple, Google & Co. took a deeper “breath”, the German DAX30 dropped back below 13,000 points.

Into the weekly close the DAX30 took on further bearish momentum in the first hour of trading, attacking the hourly trend support around 12,800 points, but bulls kept the index above that key-support, holding the long sequence intact.

Still, the break below 13,000 points leaves the technical picture with some deeper short-term scratches, leaving chances elevated that we’ll get to see another attack at the region around 12,800 points with a break lower and an bearish acceleration down to 12,470/500 points.

This bearish outlook remains given as long as we trade below 13,200 with the DAX30 finding a potential short-trigger around 13,080/100 points.

While the economic calendar is quite thin into the start of the week, trader should keep an eye on the developments in the US tech sector and a further correction here, but also keep an ear on the diplomatic developments between the US and China after the Chinese have ordered the closure of the US consulate in Chengdu in a tit-for-tat move after Washington forced the Chinese consulate in Houston to cease operations.

Source: Admiral Markets MT5 with MT5-SE Add-on DAX30 CFD Hourly chart (between July 7, 2020, to July 24, 2020). Accessed: July 24, 2020, at 10:00 PM GMT

Source: Admiral Markets MT5 with MT5-SE Add-on DAX30 CFD Daily chart (between April 10, 2019, to July 24, 2020). Accessed: July 24, 2020, at 10:00pm 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%, in 2019, it increased by 26.44% meaning that after 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!

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