Trade idea on the DAX 30
Waning economic data out of Germany over the last six months has seen German IFO business climate sentiment Index moving lower, coupled with the Eurozone uncertainty the German Index (DAX 30) has come under pressure.
Outlook: Looking at the chart below we might see the price action in the DAX 30 move lower even further as political tensions over the looming trade war intensifies.
There is a possible head and shoulders technical pattern forming on the weekly time frame and this might support the move lower in the medium term. The price is also trading below the 50-day SMA (simple moving average) as seen in chart (Blue dotted line), but trading well above the 200-day SMA (simple moving average).
Full trade summary detailed below:
Trade: DAX 30
- Entry: 12205
- Stop loss: 12640
- Target price 1: 11843
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