Are DAX30 bulls about to sustainably recapture 13,000 points?
Source: Economic Events July 2020 - Admiral Markets' Forex Calendar
The economic calendar for the beginning of the trading week is quite thin. However, there are chances that today will set the stage for new trends in the coming days.
The reason for this? The EU summit over the weekend saw EU leaders moving towards an agreement on a roughly 1.85 trillion Euro European Corona pandemic recovery fund.
While not all details could be worked out (which could be expected, see our analysis from last Friday), steps in that direction seem to have been taken, leaving the German DAX30 with the potential for a run above 13,000 points by today and if not, in the very near future.
This bullish outlook remains on a technical level as long as we trade above 12,770/800 points, and on a longer time frame (Daily), recapturing 13,000 could lead the way up to the all-time high of around 13,800 points in the weeks ahead.
On the other hand: a drop below 12,770/800 would not necessarily darken the overall picture, but at least make a short-term run lower towards 12,470/500 points an option, stop-over around 12,670/700 points:
Source: Admiral Markets MT5 with MT5-SE Add-on DAX30 CFD Hourly chart (between June 30, 2020, to July 17, 2020). Accessed: July 17, 2020, at 10:00pm GMT
Source: Admiral Markets MT5 with MT5-SE Add-on DAX30 CFD Daily chart (between April 3, 2019, to July 17, 2020). Accessed: July 17, 2020, at 10:00pm 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%, in 2019, it increased by 26.44% meaning that after five years, it was up by 34.2%.
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