No bearish thesis for DAX
Negotiations have stared attempting to find a peaceful resolution between Russia and Ukraine. The Rouble as well as the Russian stock market have plummeted. The future is always unpredictable, but assuming that a peaceful resolution takes place, there won't really be any catalysts for stock markets to fall.
There are talks about treating Covid and the Omicron variant "like the flue" thus removing travel restrictions and other measures in EU. It's about time. The previous week was a good week for stock markets which seem to be recovering from a healthy correction. This recovery is expected to continue this week, and until there is a new event that will spread fear amongst investors.
Today we are looking at a bullish breakout of the "Dax" otherwise called "Germany 30" index.
The Breakout in the hourly Germany 30 Chart
The resistance of a triangle formation of the Dax has been breached.
The breaching of this resistance will convince even the most bearish investors that we are back on Bullish territory. It's as good as any time to invest.
Stop Loss
If you are margin trading, it's prudent to use a Stop Loss, conservative but easy to trigger at a level around 15.372, less conservative at 14.840. If you are not margin trading you can avoid the use of the Stop Loss altogether and just keep building on your position if things don't go your way now.
Take Profit
Conservative at 15.902, more long term at 16200. Just buying and holding might even be a better strategy since we are entering a post Covid era, characterised by increase of consumption, production and growth
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Daily Chart
The Daily chart is Characterised by lack of direction
Germany 30 has found balance on the Daily chart, even though long term it's still in an uptrend since March 2020. It is possible to continue sideways, that's why a Stop Loss in this situation may not be the best tactic. If you are margin trading however you have to use one to protect your account.
Click below to read more daily market analysis by Myrsini Giannouli in our TopFX website:?Market Analysis and Trade Ideas by Myrsini Giannouli
Disclaimer:
“The content provided in this material and/or any other material that this content is referred to, is for information purposes only and shall not be considered as a recommendation and/or investment advice and/or investment research and/or suggestions for performing any actions with financial products or instruments, or to participate in any particular trading strategy. This material does not take into account reader's financial situation or investment objectives. We advise any readers of this content to seek their own advice. Without the approval of Alex Katsaros, no reproduction or redistribution of the information provided herein is permitted. All charts displayed are screenshots from "cTrader" trading platform, owned by Spotware Systems Ltd"