DAX with weekly close above 13,000 points – next stop: All Time High?

November 16, 2020 10:30

Source: Economic Events November 16, 2020 - Admiral Markets Forex Calendar

In our last technical piece for the DAX30, last Monday, we were quite reserved in regards to further bullishness over the course of last week.

While we wrote in the last paragraph:

[…] If bulls, on the other hand, stay in control and push the DAX30 above 12,600 points, a continued run up to 12,700 points would become an option, above which, a run to above 13,000 points would then become an option. […]

We didn't really anticipate what would follow right on Monday: after Pfizer/BioNTech announced that they were on their way to a Covid-19 vaccine which is said to be effective in over 90% of the cases in preventing the virus. The German index exploded on the upside, pushing significantly above 13,000 points, only falling short of an attack on the region around 12,250/300 points.

While the German index stabilized from Tuesday to Friday, the short attempt to push the DAX30 back below the 13,000 point mark on Thursday failed and was quickly bought back, leaving the German index to close the week above 13,000 points.

Should the DAX30 see another attack at the 13,000 point level, the uptrend of last week could be considered broken on the H1, leaving the German index vulnerable to a run down to 12,880/900 points. If it breaks below that level, a move to as low as 12,600 points will become an option, erasing all of the recent "Covid-19 vaccine hope" gains.

If the German index, on the other hand, breaks above 13,300 points, the focus will quickly switch to the September highs at around 13,450 points. In fact, this would be the last stop-over before bulls go for an attack on the All Time Highs around 13,800 points:

Source: Admiral Markets MT5 with MT5SE Add-on DAX30 CFD Hourly chart (between October 26, 2020, to November 13, 2020). Accessed: November 13, 2020, at 10:00 PM GMT

Source: Admiral Markets MT5 with MT5SE Add-on DAX30 CFD Daily chart (from June 24, 2019, to November 13, 2020). Accessed: November 13, 2020, at 10:00 PM 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%, and in 2019, it increased by 26.44% meaning that in 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.

Discover the world's #1 multi-asset platform

Admiral Markets offers professional traders the ability to trade with MetaTrader 5, allowing you to experience trading at a significantly higher, more rewarding level than with MetaTrader 4. Experience benefits such as the addition of the Market Heat Map, so you can compare various currency pairs to see which ones might be lucrative investments, access real-time trading data, and so much more. Click the banner below to start your FREE download of MT5!

Disclaimer: The given data provides additional information regarding all analysis, estimates, prognosis, forecasts or other similar assessments or information (hereinafter "Analysis") published on the website of Admiral Markets. Before making any investment decisions please pay close attention to the following:

  1. This is a marketing communication. The analysis is published for informative purposes only and is in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.
  2. Any investment decision is made by each client alone whereas Admiral Markets shall not be responsible for any loss or damage arising from any such decision, whether or not based on the Analysis.
  3. Each of the Analysis is prepared by an independent analyst (Jens Klatt, Professional Trader and Analyst, hereinafter "Author") based on the Author's personal estimations.
  4. To ensure that the interests of the clients would be protected and objectivity of the Analysis would not be damaged Admiral Markets has established relevant internal procedures for prevention and management of conflicts of interest.
  5. Whilst every reasonable effort is taken to ensure that all sources of the Analysis are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admiral Markets does not guarantee the accuracy or completeness of any information contained within the Analysis. The presented figures that refer to any past performance is not a reliable indicator of future results.
  6. The contents of the Analysis should not be construed as an express or implied promise, guarantee or implication by Admiral Markets that the client shall profit from the strategies therein or that losses in connection therewith may or shall be limited.
  7. Any kind of previous or modelled performance of financial instruments indicated within the Publication should not be construed as an express or implied promise, guarantee or implication by Admiral Markets for any future performance. The value of the financial instrument may both increase and decrease and the preservation of the asset value is not guaranteed.
  8. The projections included in the Analysis may be subject to additional fees, taxes or other charges, depending on the subject of the Publication. The price list applicable to the services provided by Admiral Markets is publicly available from the website of Admiral Markets.
  9. Leveraged products (including contracts for difference) are speculative in nature and may result in losses or profit. Before you start trading, you should make sure that you understand all the risks.
Admirals An all-in-one solution for spending, investing, and managing your money

More than a broker, Admirals is a financial hub, offering a wide range of financial products and services. We make it possible to approach personal finance through an all-in-one solution for investing, spending, and managing money.