Market Analysis: Bulls in charge of the action: DAX30 CFD reconquers 11,000 points

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  • 22.01.2019
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Market Analysis - DAX30 CFD

As anticipated in our technical research piece for the DAX30 CFD last Wednesday where we pointed out “[…]another attempt to break above 11,000 points in the DAX30 CFD seems likely in the coming days.[…]”, on Friday the break finally occurred. In review of the price action, it seems as if the squeeze higher was a combination of the technical relevance of the region around 10,970/11,000 points, and the hedging taking place shortly before, and in regards to the expiration of January-options in the FDAX at the EUREX.

The question heading into the start of the week now is whether this move was sustainable or not. If the DAX30 CFD initiates a corrective move, the breakout region around 10,970/11,000 points now acts as a solid region of support against which long-engagements look interesting, from a risk-reward perspective. In general, the short-term picture in the hourly-chart in the DAX30 CFD remains positive as long as we trade above 10,800 points, but with the squeeze heading into the region around 11,250/300 points, the risk-reward-ratio for long-engagements (also on the lower time-frames) becomes a little unattractive:

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Source: Admiral Markets MT5 with MT5SE Add-on DAX30 CFD hourly chart (between 28 December 2018 to 18 January 2019). Accessed: 18 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%, in 2018 it fell by 18.26%, meaning that after five years, it was up by 10.5%

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