Market Analysis: After breaking 10,700, the DAX30 CFD eyes 11,000 points

  • master
  • 08.01.2019
  • Comments Off on Market Analysis: After breaking 10,700, the DAX30 CFD eyes 11,000 points

DAX 30 CFD Trading - Market Analysis

With the economic docket being quite thin, today we want to focus exclusively on the technical side in the DAX30 CFD. Even though the first week of trading in 2019 was quite short for the DAX30 CFD, it delivered some interesting hints, which may come as a surprise for some traders. After Apple’s revenue outlook cut for the first time in almost two decades after markets closed on Wednesday, the DAX30 CFD initially failed to break above 10,660/680 points.

Forex Calendar - Economic Announcements

Source: Economic Events 07 January 2019 – Admiral Markets’ Forex Calendar

But it didn’t break below 10,400 points on Thursday either, and instead used the message that China cut banks’ reserve ratios by 1%, the strong US jobs report on Friday, and especially the comments from FED chairman Powell, when he stated that the FED is listening carefully to the markets, that it can change its policy and is prepared to adjust it quickly and flexibly, as fuel for a break of the key resistance region at 10,680/700 points.

DAX30 Hourly Chart

Source: Admiral Markets MT5 with MT5SE Add-on DAX30 CFD Hourly chart (between 11 December 2018 to 04 January 2019). Accessed: 04 January 2019 at 10:00 PM 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%, and in 2018 it fell by 18.26%, meaning that after five years, it was up by 10.5%.

Even though the mode seems a bit extended on the upside, the short-term picture is now bullish, and a re-test of the 11,000 level in the days to come is a serious option. If the DAX30 CFD decides to first go for a first correction, a re-test of the breakout level around 10,680/700 is possible. On the other hand, it wouldn’t come as a surprise if the DAX now takes a breath and stabilizes between 10,750 to 10,850 before going for a squeeze up to 11,000 points. In general we can say that on an hourly chart the DAX30 CFD remain short-term-bullish as long as we trade above 10,400 points.

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