For the past month, the German DAX40 has experienced a remarkable 10% surge, reflecting strong bullish momentum. Despite ongoing market volatility and frequent pullbacks, every dip continues to attract fresh buyers, reinforcing the upward trajectory. Key technical levels, such as the 38 and 50 Fibonacci retracements, have been well respected. Earlier today, the index found firm support just below the 38 Fib, confirming the significance of this level.
Ideally, a long entry positioned 200 points below the current market price would have provided an optimal buying opportunity. However, given the strength of the ongoing uptrend, we have decided to execute a direct market buy trade immediately. To manage risk effectively, our stop-loss will be placed below 22,700, allowing sufficient room for daily price fluctuations. Meanwhile, our take-profit target is set at 23,400, aiming for a solid 400-point gain.
Our bullish outlook is reinforced by a high yet not overbought Relative Strength Index (RSI), indicating strong demand for the DAX40. Additionally, a Golden Cross formation has emerged, a well-known technical pattern that signals further upside potential. These factors combined suggest continued strength in the index, making a long position a favorable strategy at this time.
Ideally, a long entry positioned 200 points below the current market price would have provided an optimal buying opportunity. However, given the strength of the ongoing uptrend, we have decided to execute a direct market buy trade immediately. To manage risk effectively, our stop-loss will be placed below 22,700, allowing sufficient room for daily price fluctuations. Meanwhile, our take-profit target is set at 23,400, aiming for a solid 400-point gain.
Our bullish outlook is reinforced by a high yet not overbought Relative Strength Index (RSI), indicating strong demand for the DAX40. Additionally, a Golden Cross formation has emerged, a well-known technical pattern that signals further upside potential. These factors combined suggest continued strength in the index, making a long position a favorable strategy at this time.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.