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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Can the DE30 close above the 50-day moving average?

14:19 22 July 2021

The German benchmark index breaks out of the falling wedge formation to the upside.

D1 chart

It is only on the third day of the recovery that the DE30 is able to reach the much-watched 50-day moving average, highlighting how strong the five-day sell-off was that was initiated a week ago on Tuesday. In order for the short-term environment to become bullish again and the double top formed at the all-time high can be tested, the index would need to sustainably break above the 20-day moving average.

Source: xStation5

H1 chart

Today's rise allows the DE30 to fight its way back to the area between 15,445 and 15,693 points, which particularly determined the price action in the first half of June. Will the index soon decide on a clear direction? As long as the lower limit of the range as well as the 200-hour moving average can be defended, buyers should have an advantage.

Source: xStation5

Maximilian Wienke, CFTe
XTB Germany
 

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