Recommendation for DAX Index: Strong Buy
Buy Stop : Above 11151.39
Stop Loss : Below 10217.66
| Indicator | Value | Signal |
|---|---|---|
| MACD | Buy | |
| Stochastic | Neutral | |
| Donchian Channel | Buy | |
| MA(50) | Buy | |
| Fractals | Buy | |
| Parabolic SAR | Buy |
Chart Analysis
On the daily timeframe DE30: D1 has breached above the 50-day moving average MA(50) which is falling. We believe the bullish momentum will continue after the price breaches above the upper Donchian boundary at 11151.39. This level can be used as an entry point for placing a pending order to buy. The stop loss can be placed below 10217.66. After placing the pending order the stop loss is to be moved every day to the next fractal low, following Parabolic signals. Thus, we are changing the expected profit/loss ratio to the breakeven point. If the price meets the stop-loss level (10217.66) without reaching the order (11151.39) we recommend cancelling the order: the market sustains internal changes which were not taken into account.
Fundamental Analysis
Germany’s consumer and business confidence deteriorated while inflation decline was not as steep as forecast. Will the DE30 rebound continue?