Bulls regain control: DAX30 back on its way to 11,000 points
Source: Economic Events May 8, 2020 - Admiral Markets' Forex Calendar
The DAX30 shrugged off the initial shock of Tuesday's German Constitutional Court's ruling last Tuesday, deciding that some ECB actions in regards to asset purchases regarding the QE are unconstitutional and thus not valid in Germany since ECB decisions are not backed by the EU treaty, and brought the mark of 11,000 points into focus for the DAX30 into the last weekly close.
The driver probably came from not only increases in optimism in regards to the reopening efforts of the Corona lockdown, especially in the US.
But also that recent built trade tensions between the US and China eased a little. Beijing and Washington discussed their Phase 1 trade deal in a telephone call, with China agreed to improve the atmosphere for its implementation and the US promising both countries expected obligations to be met.
If the break above 10,800 points now proves sustainable, a test of the psychologically relevant region around 11,000 points seems likely, probably even a run as high as 11,250/300 points.
A solid support and potential long trigger can be found around 10,800 points, while a drop back below 10,800 and thus back into the neutral zone between 10,200 and 10,800, identifies the push back above 10,800 points as a fake out:
Source: Admiral Markets MT5 with MT5-SE Add-on DAX30 CFD Hourly chart (between April 20, 2020, to May 8, 2020). Accessed: May 8, 2020, at 10:00pm GMT
Source: Admiral Markets MT5 with MT5-SE Add-on DAX30 CFD Daily chart (between January 23, 2019, to May 8, 2020). Accessed: May 8, 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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