Source: Economic Events July 13, 2020 - Admiral Markets' Forex Calendar
The DAX30 bulls had (and will have) to deal with some serious headwinds, beginning early last Friday, for the new week of trading.
The German index seriously attacked and dropped below the short-term important support level of around 12,470/500 points.
Above that level, another stint up to 12,750 and towards the June highs around 12,900 points was once possible, but this outlook has now darkened.
With rising fears around new Corona infections in the US, especially in Texas and Florida which together are responsible for over 20% of the annual US GDP, and that another lockdown of the US economy could be imminent, placing the advantage more and more with the bears.
And with the very extended mode in the Nasdaq100, mainly driven by the "Big 5" of Apple, Amazon, Microsoft, Facebook, and Google, following a positive Thursday while 392 stocks in the SP500 declined, the market is screaming for a correction which would potentially drive Equities as a whole significantly lower, and the DAX30 could be headed for a weak start into the week.
What's certainly interesting is that the German index finds a solid support around 12,370/400 points.
If we break lower here and close below that level, the path for another stint below 12,000 points in the days to come could be levelled:
Source: Admiral Markets MT5 with MT5-SE Add-on DAX30 CFD Daily chart (between March 27, 2019, to July 10, 2020). Accessed: July 10, 2020, at 10:00pm 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%, in 2019, it increased by 26.44% meaning that after 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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