Hello Friends,
Back Again with a Trade Idea and This time it's about a Stock Market Index.
The German Stock Market Index : DAX30 (GER30)
Yes, It's One of My Favorite Index, Lovely Index to Trade.
Globally Some Panic is seen in Investors across many major Markets, but is it the truth ?? I Strongly Disagree, May be I am wrong, but I always say what I see on the Charts. No Bias, nothing emotional and No Vested Interest, Plain Trading views only. May be the retail Investors are getting trapped in these kind of moves and the so called Big Analysts are trying to keep the small traders away from Markets for whatever reasons. I don't care about any contra views or opinions, I am just putting up the things what I see, there may always be a difference of opinion in Technical Analysis. Forget it, Let's come to point..
We will see Charts One by One,
This is a Daily Chart, We see a Clear Breakout from the falling trend is already in place and it is confirmed by retesting the falling trendline, both breakout and retesting levels are marked by small thick green arrows. The falling trendline is marked with brown color.
The Price is moving in a Rising channel from the lows, Marked in Blue. there is also a possibility of a express uptrend channel as marked by lime color.
Both the channels are Rising channel showing price has entered in uptrend. if the blue channel is followed, we might stop near 11000 levels. if lime color channel is followed we may move higher. in both cases upside is valid. while on downside there are big supports to resist fall.
Let's see a different view.
This is same chart with another perspective. After falling from All time high, the index started moving higher but still far away from all time high levels, While reversing to the uptrend, the price movement formed a chart pattern called "CUP and Handle" Pattern. The Handle is about to be completed. The Neckline for this formation is placed around 10820 and the depth of cup is approx 9000 levels, giving a height of 1820 points, Once Price moves above Neckline we may expect the movement of 1820 points on the upside above 10820 levels giving a price target of 12700, After breakout it will be a faster move towards the targets.
Let's see One More Chart
The Same chart with a different story, This time we are focusing on a Smaller part of the chart, Here I see a FLAG formation, it's a continuation pattern and is a reliable pattern with a good success rate. Here the Flag hasn't given any breakout yet. The Pole Height in this case is approx 1170 points and once the breakout is done above 10680 levels, We may expect the index to move 1170 points approx, ultimately it will not be a one sided move, it will be Huge Breakout supporting the Cup & Handle Breakout to complete and it will take the price to higher levels and we might see 11850+ levels.
Overall I am Looking at the Bullish Formations spread on the chart and they are telling a big growth story. yes ofcourse I have the rights to be wrong always. My views and opinions are not valid if the 10680 level is not crossed and sustained.
My Clients are already long in Indices taking benefit of This weeks fall and we might close the trades in between at any point of time.
My Recommendation will be :
BUY DAX30 (GER30) on all dips towards 10400 Keep a Stoploss of 10200 with Take Profit around 10680 - 11000 and Above
The Trade is showing Excellent Risk Reward.
Disclaimer :
The Author is a Global Market Expert and Technical Analyst working in Global Markets as an Investment Adviser and Fund Manager. He is bearing a vast experience of more than 8 years.
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