Good afternoon Forex Kings
All trades are currently running into a profit, I feel we are positioned well for the week ahead.
We are now looking at the Index market as corporations are now coming out cutting growth forecasts due to the coronavirus.
Apple has already said they will not meet Q1 earnings due to decreased supply/demand in the current market.
HSBC has now cut its 2020 forecasts as well due to corona virus, they are also expecting a large amount of job cuts as the bank is preparing for a major overhaul.
Is this the start of major corporations cutting growth forecasts?
We see the German index (DAX) as an opportunity to sell.
DAX – Weekly Charts
RSI is signalling a bearish divergence, this suggests the peaks are running out of steam. There is also a major double top which generally results in a pull back.
DAX – 1 Day Charts
Firstly, the index is trading between a sharp inclining wedge formation. This suggests we could see a sizeable pull back soon.
There has just been a rejection from the top of the wedge which could provide a good entry point.
MT5 Code: GDAXI
Trade Setup: SELL (Market Order) – our entry was 13,725, stop loss at 13,900 and take profit targets are 13,200 and 13,000.
Stop loss: 175
Take Profit: 525
With the DAX, 1 contract is 2.50 Euros per 00,001 of movement.
1 contract = 437 EURO risk which is roughly $700 AUD