GER40 weekly downtrend opportunity based On 1.00 Lot Calculation:
- The GER40 index represents the DAX 40 index in Germany, which includes companies such as Adidas, Bayer, Daimler, Deutsche Bank, Siemens, BMW, E.ON and etc. In essence, the index includes the most valuable and advanced companies in Germany, the largest economy in Europe.
- EUROPEAN CENTRAL BANK (ECB) RAISED INTEREST RATES TO THEIR HIGHEST SINCE 2011. The ECB raised their benchmark interest rate by 75 basis points to 1.25% (its highest since 2011). Interest rates are expected to go up due to rising inflation in Europe, which has hit an all-time high of 9.1%. Rising interest rates, however, could be also expected to slow down the economic activity in Europe, pushing it even closer to a recession.
- EUROPEAN ECONOMY REMAINS UNDER THREAT OF RECESSION AS RUSSIAN NATURAL GAS FLOWS FROM NORD STREAM 1 WERE CUT DOWN TO 0.00%. Nord Stream 1 flows were responsible for around 40% of total Russian flows to Europe. In addition, the markets fear that Russia could soon consider cutting flows via other channels, like Ukraine, to Europe. Recent economic data in Europe and Germany, in particular, has shown that the EU economy continued to fall and reduced natural gas flows from Russia to Germany could exacerbate this situation as Russia provided German with 55% of their needs last year. Without the Russian gas, the German economy could soon enter a recession, which is negative for the Euro currency.
- GERMAN INFLATION AT ITS HIGHEST SINCE 1973/1974 (7.9%): Inflation in Germany continued to rise reaching its highest rate since mid-1970’s, which is troubling German households, but business sectors too.
- RECENT DECLINES PUSHED GER40 INDEX INTO BEAR MARKET: The GER40 index has fallen around 24% since its all- time high of 16293.5 (November, 2021). During a bear market, the stock indices struggle to recover and spend an extended time period (multi- month period) under negative pressure.
GER40, September 16, 2022
Current Price: 12,815
|
GER40 |
Weekly |
|
Trend direction |
|
|
13,700 |
|
|
13,550 |
|
|
13,400 |
|
|
12,200 |
|
|
11,700 |
|
|
11,300 |
Example of calculation base on weekly trend direction for 1.00 Lot1
|
GER40 |
||||||
|
Pivot Points |
||||||
|
Profit or loss in $ |
-9,115 |
-7,322 |
-5,828 |
6,127 |
11,107 |
15,092 |
|
Profit or loss in €2 |
-9,150 |
-7,350 |
-5,850 |
6,150 |
11,150 |
15,150 |
|
Profit or loss in £2 |
-8,014 |
-6,437 |
-5,123 |
5,386 |
9,765 |
13,269 |
|
Profit or loss in C$2 |
-12,110 |
-9,728 |
-7,743 |
8,140 |
14,758 |
20,052 |
1. 1.00 lot is equivalent of 10 units
2. Calculations for exchange rate used as of 09:12 (GMT+1) 16/09/2022
Fortrade recommends the use of Stop-Loss and Take-Profit, please speak to your Client Manager regarding their use.
- You may wish to consider closing your position in profit, even if it is lower than suggested one
- Trailing stop technique can protect the profit – Ask your Client Manager for more detail