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Will a break at 13,300 trigger a buying wave and push the DAX30 CFD up to the all-time highs?

November 11, 2019 10:00

DAX30 CFDs

Economic events November

Source: Economic Events November 11, 2019 - Admiral Markets' Forex Calendar


After bullish performance over the last week of trading, there seems to be a higher chance of a slow start into the new week.

Due to the "Veterans Day" bank holiday in the US, the US Fixed Income Markets will not be open for regular trading hours, indicating that trading volume will be lower than on average. That's noteworthy because of the fact that yields have been a principal driver of price action in the last days, and with no impulses to be expected from this end, volatility should stay low.

From a technical perspective, the picture in the DAX30 CFD on H1 stays bullish and the Long sequence stays intact as long as the German index trades above 13,100 points. Only a break lower would darken the technical picture from a short-term perspective, activating the region around 12,970/13,000 points as a first target.

On the upside, the region around 13,300 points stays in focus: a break higher could initiate a Short-squeeze to around 13,500 points in the days to come. One main driver here could be the small expiration in DAX options next Friday. Data from EUREX shows an elevated Open Interest of Short Calls around 13,300 points and then around 13,500 points, meaning that a break above 13,300 could trigger a wave of market participants being in a need to hedge their Short exposure by buying the DAX:

DAX30 CFDs - Hourly chart

Source: Admiral Markets MT5 with MT5-SE Add-on DAX30 CFD Hourly chart (between October 22, 2019, to November 8, 2019). Accessed: November 8, 2019, at 10:00pm GMT


DAX30 CFD-Daily Chart

Source: Admiral Markets MT5 with MT5-SE Add-on DAX30 CFD Daily chart (between August 2, 2018, to November 8, 2019). Accessed: November 8, 2019, at 10:00pm 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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