Trade of the week: long DAX 40
Since an Elliott Wave ‘abc zig zag’ correction may have ended at Friday’s low, we would like to go long the DAX 40 index or front month futures contract above Friday’s high.
We will set a stop loss below last week’s low and an upside target around the 18,500 mark.
(AI Video Summary)
Previous USD/JPY and Dow Jones trading outcomes
In this week's "Trade of the week" video, Axel Rudolph focuses on his previous trading strategies involving the USD/JPY currency pair, the Dow Jones, and notably, the DAX 40 German stock index. The discussion highlighted a short position on USD/JPY that's approaching its stop loss at ¥152 due to an ineffective bearish bet. Despite missing an optimal entry point on the Dow Jones, it's was noted as a potentially profitable short-lived trade.
This week's trading opportunity
The primary insight revolves around a bullish perspective on the DAX 40, theorised to conclude an 'abc zig zag' Elliott Wave correction, suggesting an impending rise to new highs. The recommended action is going long on the DAX 40 just above a recent high of 18,224, with a close watch on making new record highs, setting a stop loss below the last low, targeting around the 18,500 mark.
This information has been prepared by IG, a trading name of IG Australia Pty Ltd. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
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