Market Analysis: DAX30 CFD still eyeing 11,000 points, but bulls should watch out

January 09, 2019 09:27

As we already mentioned in our weekly market outlook on Monday, "after the bulls reconquered the region around 10,660/680 points, further gains up to and also slightly above 11,000 points become a serious possibility." And indeed, after the DAX30 CFD went for a first correction and a re-test of the breakout level around 10,680/700 on Monday, on Tuesday the sequence of higher highs and lows was continued, and bulls are now in charge on an hourly time frame, as long as the DAX30 CFD trades above 10,660/680 points with a test of 11,000 in the second week of trading becoming a serious option.

Source: Economic Events 09 January 2019 - Admiral Markets' Forex Calendar

Nevertheless, short-term bulls should still be careful with overly aggressive long-engagements: on the dominating daily-time frame, the picture remains bearish below 11,000 points. And in addition, one can spot the first signs of a diminishing upside momentum with a bullish divergence forming in the RSI (14) on the hourly time frame, with both signs that the short-term bullish momentum is probably losing some of its momentum.

Source: Admiral Markets MT5 with MT5SE Add-on DAX30 CFD Hourly chart (between 14 December 2018 to 08 January 2019). Accessed: 08 January 2019 at 10:00 PM 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%.

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 are 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 refer 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.
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.
Avatar-Admirals
Admirals An all-in-one solution for spending, investing, and managing your money

More than a broker, Admirals is a financial hub, offering a wide range of financial products and services. We make it possible to approach personal finance through an all-in-one solution for investing, spending, and managing money.