Trade of the week: long DAX 40
Since the past couple of weeks’ correction may have ended at Friday’s low, we would like to go long the DAX 40 index, with a stop loss below last week’s low, and an upside target around the 18,500 mark.
(AI Video Summary)
This week's trading opportunity
This week's focus is on a trade involving the DAX 40 index. Despite a prior loss from going long after a bullish hammer formation, the outlook remains cautiously optimistic, pegged on stabilising conditions in the Middle East. A new trade suggestion is to buy the DAX 40 again, setting a stop loss beneath the past five days' lowest price, aiming for a target around 18,500. Key insights include the importance of confirming buy signals post-hammer formation to avoid premature trades that could end in losses.
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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