Germany’s DAX Index has dipped below 9000 for the third time this year, but Steve O’Hare from First 4 Trading is expecting to see a temporary pullback from  current price levels. In the past prices have rebounded above the important 9000 psychological technical level after falling below 9000. The recent downward trend comes after the International Momentary Fund lowered its forecast for the global economy, citing the economic slowdown in Germany and China as well as the numerous conflicts occurring across the globe. Europe’s largest economy, Germany missed production estimates escalating the week’s negative trading on the DAX.

Steve notes that prices on the DAX have fallen 10 percent since the September peak of 9892. News from the Federal Reserve’s meeting minutes on Wednesday created a slight positive tone for the DAX. A bullish Harami candle was formed on the DAX, reversing the medium term bearish trend for the moment. Taking advantage of this temporary pullback, Steve is looking to set longs in early trading and on a dip lower. He has set a target to buy at 9115 and 9075. His two targets for the trade are 9300 and 9425 with a stop at 9040.

Disclaimer

Saxo Bank Group provides an execution-only service. All information provided on Tradingfloor.com is solely for general information. Tradingfloor.com does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. Saxo Bank Group will not be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available as part of the Tradingfloor.com or as a result of the use of the Tradingfloor.com.

Please read our notification on

Non-independent investment research disclaimer

Full disclaimer