After some heavy losses in the last week of trading (the DAX30 CFD lost more than 3% between Monday to Friday), the DAX30 CFD seems to form a bottom around 11,050 points. In combination with the potential bullish divergence in the RSI (14) forming on the hourly time-frame (blue), there is an increasing indication that bears have lost their short-term momentum, even though it is at least necessary that the DAX30 CFD pushes back above 11,370/400 points.
Source: Economic Events 29 October 2018 – Admiral Markets’ Forex Calendar
If such a re-conquering of the level around 11,400/430 points is successful, and with further gains up to 11,500 points, the lows from last week Tuesday seem likely. Nevertheless, as long as the DAX bulls can’t push the index back above 11,670/700 points (the pre-weekly highs), there a chance that another, and this time successful attempt to break the level around 11,050 points is waiting just around the corner. Such a break lower activates a next potential target around 10,800 points:
Source: Admiral Markets MT5 with MT5SE Add-on, Accessed: 27 October 2018, 9:00 AM CEST
This material does not contain and should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments. Please note that such trading analysis is not a reliable indicator for any current or future performance, as circumstances may change over time. Before making any investment decisions, you should seek advice from independent financial advisors to ensure you understand the risks.