In February this year, after several of our bullish targets achieved over the past year or so, 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 changed our bullish outlook for DAX/GER30 to bearish over the longer horizon.
Based on our calculations at the time, we suggested that the sharp selloff that shook investors’ nerves is not over and we at FxWirePro wrote, “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.”
The recent selloff over the trade war fear, which pushed the GER30 (CFD of DAX) new 2018 low around 11700 suggest that so far, we have been right about ‘selloff not over yet’.
In this article, we would like to extend our short side target for the GER30 from the current 11,000 to 10,200 based on our latest calculations. We would also like to revise the stop loss from current 13,600 to 12800 area.
However, an interim near-term bounce back looks very likely.
