DAX (GER30) BUY – 3rd August 2021

DAX (GER30) BUY – 3rd August 2021 (Closed)

Good evening team,

We are taking a look at the German index as the French index is surging higher. These two indices have a 0.92-0.98% correlation with 1 being a 100% correlation. Meaning they follow each other very closely. The CAC, French Index is now trading at record highs whilst the DAX remains at support. This means there has been a divergence as one pulls away from the other. We are now expecting the DAX to catch up with the French index into record-high territory.

French Index

German Index

The index has not broken down from the rising wedge structure, therefore bulls are still in control.

German Index – 1 Hour Chart

Key support can be found at 15,430. Any stop loss needs to go below this level. Please keep in mind this pricing is on Focus markets.

Trade Setup: BUY Market execution, current price 15,575, stop loss 15,400 and take profit target 16,000

Stop loss: 175 pips

Take profit: 425 pips

Focus Markets 1 contract = $10 per pip

Fusion Markets 1 contract = $1 per pip

Trade Setup
BUY - Market Execution

Entry
15,575

Take Profit
16,000

Stop Loss
15,400