DAX30 facing selling pressure with US Equities – 13,000 in focus again
Source: Economic Events September 07, 2020 - Admiral Markets' Forex Calendar
The DAX30 took a serious hit last week on Thursday with the Nasdaq100 seeing its biggest drop since March this year and the S&P500 seeing its third biggest decline, after making a new All Time High, by dropping 3.5% (the other two occasions were in November 1991 with a 3.9% drop and September 1955 with a 6.6% drop).
Most likely, the slow start into the new week, which is to be expected, due to the "Labour Day" bank holiday in the US (for changed trading hours please click here) is the "calm before the storm".
After breaking above the July highs around 13,300 points everything was pointing to a direct run towards 13,800 points.
But, here is what transpired:
- An "overdue" correction in US equities
- This included Apple, with its market cap dropping by around 179 billion USD in only one day and, thus, more than the market cap of 491 companies in the S&P500
- The German index followed its bigger brother and dropped back towards the region around 13,000 points.
Purely technically speaking, the mode on H1 remains bullish for the DAX30, though with a neutral tendency.
While accelerating bearish momentum shouldn't be necessarily expected on Monday, a sustainable break below 12,800 points in the days to come darkens the technical picture and makes a deeper correction likely, activating the region around 12,470/500 points as a first target.
If the bearish action on Thursday was only a "one-off", another bullish stint with a successful break above the pre-weekly highs around 13,450 points levels the path to All Time Highs around 13,800 points, though with a stop-over around 13,600 points:
Source: Admiral Markets MT5 with MT5SE Add-on DAX30 CFD Hourly chart (between August 17, 2020, to September 04, 2020). Accessed: September 04, 2020, at 10:00 PM GMT
Source: Admiral Markets MT5 with MT5SE Add-on DAX30 CFD Daily chart (between April 08, 2019, to September 04, 2020). Accessed: September 04, 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 a custom, upgraded version of MetaTrader 5, allowing you to experience trading at a significantly higher, more rewarding level. 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 Supreme Edition!
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:
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.