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Trump gets Coronavirus, DAX30 under pressure

October 05, 2020 11:30

Trump gets Coronavirus, DAX30 under pressure

Economic Events October 05, 2020Source: Economic Events October 05, 2020 - Admiral Markets' Forex Calendar

The German DAX30 found itself in a trading range between 12,700 and 12,900 points for most of last week after a bullish run last week on Monday.

A break below the "make-or-break" level on the downside was initiated last Friday, potentially driven by the news that US President Trump got Coronavirus, resulting in uncertainty among market participants.

Technically, the drop is clearly a bearish sign, potentially levelling the path down to 12,200 points with a stop-over at around 12,450/470 points.

At around 12,200 points we find the SMA(200) on a daily time-frame. Therefore, it is a key level that could, if broken, add further fuel.

In addition to the technical side:

  • There is a known bearish seasonality in October in US presidential election years (usually October is a bullish month for Equities)
  • There is also very low volatility in bond markets (currently, interest rate volatility is at an all-time low; in the past, such low volatility was usually followed by a sharp push higher with a sell-off of stocks)

The risk-reward ratio for short-term and mid-term Short engagements seems to be more attractive than for Long engagements.

Short-term our bearish outlook will brighten if bulls can sustainably recapture 12,850/900 points:

Admiral Markets MT5 with MT5SE Add-on DAX30 CFD Hourly chartSource: Admiral Markets MT5 with MT5SE Add-on DAX30 CFD Hourly chart (between September 14, 2020, to October 02, 2020). Accessed: October 02, 2020, at 10:00 PM GMT

Admiral Markets MT5 with MT5SE Add-on DAX30 CFD Daily chart Source: Admiral Markets MT5 with MT5SE Add-on DAX30 CFD Daily chart (between May 14, 2019, to October 02, 2020). Accessed: October 02, 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%, 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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