We use cookies to give you the best possible experience on our website. By continuing to browse this site, you give consent for cookies to be used. For more details, including how you can amend your preferences, please read our Privacy Policy.
More Info Accept
81% of retail accounts lose money when trading CFDs with this provider. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 81% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. expand_more

No fiscal stimulus from the US (yet) and new lockdown fears – DAX back below 13,000

October 19, 2020 11:30

No fiscal stimulus from the US (yet) and new lockdown fears – DAX back below 13,000

Economic Events October 19, 2020Source: Economic Events October 19, 2020 - Admiral Markets' Forex Calendar

After the German DAX30 took a serious hit last week on Thursday, breaking below 12,950 and even 12,770/800 points, it's difficult to spot a clear reason for the short-term sell-off.

Most likely it seems as if it was a combination of rising fears of a second Coronavirus lockdown over the European continent, after the situation in Spain and France started to significantly worsen again, as well as in Germany where Coronavirus cases spiked significantly in recent days.

In addition, Republicans and Democrats are still fighting over an economic relief package and there are fewer signs that they will reach a deal before the US presidential election on November 3rd.

What is positive, from a technical perspective, is that the DAX30 didn't break below 12,500 points, which would level the path down to 12,200 points, a region where we can also find the SMA(200) on a daily time-frame.

What needs to be seen now is whether the bullish run into the last weekly close above 12,800 points is sustainable: if so, it needs to be seen how the DAX reacts against the 12,950 point region, even though we have to say that only a sustainable push back above last week's Wednesday highs around 13,050 points technically brightens the picture on H1:

Admiral Markets MT5 with MT5SE Add-on DAX30 CFD Hourly chartSource: Admiral Markets MT5 with MT5SE Add-on DAX30 CFD Hourly chart (between September 28, 2020, to October 16, 2020). Accessed: October16, 2020, at 10:00 PM GMT

Admiral Markets MT5 with MT5SE Add-on DAX30 CFDSource: Admiral Markets MT5 with MT5SE Add-on DAX30 CFD Daily chart (between May 27, 2019, to October 16, 2020). Accessed: October 16, 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!

Trade With MetaTrader 5


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 modeled 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.