Source: Economic Events August 3, 2020 - Admiral Markets' Forex Calendar
The German DAX30 took a serious hit last Thursday, when it aggressively broke below 12,800 points by dropping more than 4%. Currently, it seems as if the only reason that is didn't drop even further on Friday, were the strong earnings from tech giants like Amazon, Apple, Google and Facebook.
But the question arises, how long the tech sector can stabilize the whole of the US equity market and thus European stock market as well? This is a particular concern after the very bad economic data last week, from both Germany, which saw a historic economic collapse as the GDP shrank more than 10% (QoQ) in Q2/2020, and France which also reported a record drop in economic output as the GDP shrank 13.8% (QoQ) in Q2/2020.
Technically, we consider the short-term/Intraday mode in the DAX30 to be short if we continue to trade below 12,570 points, a break higher makes a correction as high as 12,770/800 points likely.
If bulls fail to recapture 12,570 points, confirming the bullish divergence on H1 in the RSI(14), the mode stays clearly bearish and a break below the last week lows around 12,200 points makes a stint below 12,000 points a serious option:
Source: Admiral Markets MT5 with MT5-SE Add-on DAX30 CFD Daily chart (between April 16, 2019, to July 31, 2020). Accessed: July 31, 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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