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FxWirePro Call Review: Short-term buy opportunity in DAX; maintain bearish outlook over longer horizon

In February this year, in an article named, “FxWirePro Call Review: DAX outlook revised from bullish to bearish”, available at https://www.econotimes.com/FxWirePro-Call-Review-DAX-outlook-revised-from-bullish-to-bearish-1147363 we suggested,

“Last two weeks’ selloff in the global stock markets have badly hit our bullish call on DAX/ GER30 (for CFDs). The index (GER30) has declined from 13600, in less than three weeks ago to 12220 as of today. In little more than three weeks, the index has declined more than 10 percent………… We strongly believe that the selloff, which rocked the global stock markets over the past two weeks is not over, and with that view, we would like to call on our readers to book buy side profits as we change our outlook from bullish to bearish……We would also like to urge our readers to go short on DAX or GER30 at the current rate of 12230 (GER30) with a stop loss at the recent peak of 13600 and an initial target of 11000, which is likely to get extended.”

While we are maintaining our bearish outlook over the longer horizon, our latest calculations suggest there exists buying opportunity for short-term traders in the near term. For those looking for short-term opportunities, we would like to recommend,

Trade idea:

Buy DAX (GER30) at the current rate of 12370 with targets 12580, and 12700 with the stop loss around 12120 area. The momentum might even push the index towards 13000 area but that is not our base case for the short term buyers.  

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