Market Analysis: DAX30 CFD still eyeing 11,000 points, but bulls should watch out

  • master
  • 10.01.2019
  • Comments Off on Market Analysis: DAX30 CFD still eyeing 11,000 points, but bulls should watch out

Market Analysis - Trade With The DAX30 CFD

As we already mentioned in our weekly market outlook on Monday, “after the bulls reconquered the region around 10,660/680 points, further gains up to and also slightly above 11,000 points become a serious possibility.” And indeed, after the DAX30 CFD went for a first correction and a re-test of the breakout level around 10,680/700 on Monday, on Tuesday the sequence of higher highs and lows was continued, and bulls are now in charge on an hourly time frame, as long as the DAX30 CFD trades above 10,660/680 points with a test of 11,000 in the second week of trading becoming a serious option.

Forex Calendar - Economic Announcements

Source: Economic Events 09 January 2019 – Admiral Markets’ Forex Calendar

Nevertheless, short-term bulls should still be careful with overly aggressive long-engagements: on the dominating daily-time frame, the picture remains bearish below 11,000 points. And in addition, one can spot the first signs of a diminishing upside momentum with a bullish divergence forming in the RSI (14) on the hourly time frame, with both signs that the short-term bullish momentum is probably losing some of its momentum.

DAX30 CFD Hourly Chart - MetaTrader 5 Supreme Edition

Source: Admiral Markets MT5 with MT5SE Add-on DAX30 CFD Hourly chart (between 14 December 2018 to 08 January 2019). Accessed: 08 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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