DAX30 CFD about to see a short-term relief rally back above 12,000?
Source: Economic Events October 7, 2019 - Admiral Markets' Forex Calendar
As we begin the trading week with a thin economic calendar, we want to mainly focus on the technical side in the DAX30 CFD.
After the latest US economic indications with the ISM Manufacturing and ISM Non-Manufacturing data disappointing the market participants, and last Friday's Non-Farm Payroll coming in mixed, bearish fuel drove price action in equities and in the DAX30 over the last few days. As such, the mode just looks quite stretched on the downside and chances are increased to see a short-term bounce.
We already saw such a bounce into the weekly close and the 12,000 point mark being re-captured, but the question is whether this move can be considered sustainable. If so, a deeper correction up to 12,150 points becomes a serious option.
If, on the other hand, bears take over control again into the start of the week, a re-test of the pre-weekly lows around 11,800/830 points seems likely. A sustainable break below would level the path down to 11,500 points in the days to come:
Source: Admiral Markets MT5 with MT5-SE Add-on DAX30 CFD Hourly chart (between September 16, 2019 to October 4, 2019). Accessed: October 4, 2019 at 10:00pm GMT
Source: Admiral Markets MT5 with MT5-SE Add-on DAX30 CFD Daily chart (between June 28, 2018, to October 4, 2019). Accessed: October 4, 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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