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.
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