DAX30 outlook depends on US tech sector – below 13,000 or stint towards 13,450?

September 14, 2020 11:30

Source: Economic Events September 14 , 2020 - Admiral Markets' Forex Calendar

The DAX30 presented itself initially as quite strong after the ECB last week on Thursday, which was a little surprising given the fact that the ECB didn't deliver anything new. They kept rates unchanged, while the rhetoric within the ECB statement suggested no clear tendency towards more stimulus to be decided on in the ECB meeting in December.

What became clear was that the German index and its performance currently heavily depends on US Equities, especially the Nasdaq100.

We consider the DAX30 bullish on H1. However, here are some key points to consider:

  • As long as we trade above 13,100 points, there will be the potential of seeing another attempt to break above 13,300 points into the start of the week
  • This could level the path up to the September highs around 13,450 points
  • Any Nasdaq100 weakness and break below 11,000 points would likely bring the DAX under pressure again and make a drop below 13,000 points likely
  • Even a drop back below 13,000 points wouldn't necessarily be bearish, at least not initially

In fact, we consider the German DAX30, short-term and on H1, bullish as long as we trade above 13,100 points (region around the Thursday lows) and neutral as long as the DAX30 trades above 12,750 points, the current September lows:

Source: Admiral Markets MT5 with MT5SE Add-on DAX30 CFD Hourly chart (between August 24, 2020, to September 11, 2020). Accessed: September 11, 2020, at 10:00 PM GMT

Source: Admiral Markets MT5 with MT5SE Add-on DAX30 CFD Daily chart (between April 15, 2019, to September 11, 2020). Accessed: September 11, 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.

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