DAX (GER30) - SELL STOP - 14th January 2021




DAX (GER30) - SELL STOP - 14th January 2021 (Closed)


Afternoon team,

Global equities have been on my radar for a shorting opportunity. Despite the FED comments this week, inflation has hit another record high, levels that have not been seen for 40 years. Despite the DXY dumping, we still feel the market is yet to price in a March interest rate hike followed by another couple later in the year. Fed Governor Lael Brainard said officials could boost rates as early as March to ensure that generation-high price pressures are brought under control. Federal Reserve Bank of Philadelphia President Patrick Harker and Chicago bank leader Charles Evans joined the calls by their policy-making colleagues for higher interest rates this year. This is bearish for equities, especially in the short term.

DAX 4 Hour Chart

Trade Setup: SELL STOP – Entry price 15,740, stop loss 16,040 and take profit targets 15,000.

Stop loss: 300 pips

Take profit: 700 pips

Trade Setup
SELL STOP

Entry
15,740

Take Profit
15,000

Stop Loss
16,040