GER40 weekly special report 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 2008 (3.00%), DISCOURAGING INVESTMENTS IN STOCKS. The ECB raised their benchmark interest rate by 50 basis points to 3.00% (its highest since 2008). Interest rates might be expected to go up due to rising inflation in Europe. Rising interest rates, however, could be also expected to slow down the economic activity in Europe, pushing it even closer to a recession. NEXT MEETING: March 16 at 13:15 GMT. The markets expect the ECB will raise interest rates by 50 basis points to 3.50% and say that they will keep raising rates beyond March.
- THE GERMAN ECONOMY REMAINS UNDER THREAT OF RECESSION AFTER RECORDING A DECLINE OF 0.4% IN Q4 OF 2022. Europe and German are still in clinch with Russia over the Ukrainian conflict, and the energy crisis is not over yet. Further escalation could be expected in 2023.
- GERMAN INFLATION HIT ITS HIGHEST SINCE WORLD WAR II (10.4%) BEFORE IT PULLED BACK TO 8.4%:
- TECHNICAL REVIEW: THE GER40 HAS BEEN OVERBOUGHT. According to the 14- Week Relative Strength Index, the index has been overbought as of late, reaching the overbought threshold of 70. The index has extended into that territory after the GER40 index had risen around 32% since early October 2022, testing its highest since January 2022.
GER40, March 2, 2023
Current Price: 15,300
|
GER40 |
Weekly |
|
Trend direction |
|
|
16,300 |
|
|
16,100 |
|
|
15,900 |
|
|
14,600 |
|
|
14,000 |
|
|
13,500 |
Example of calculation base on weekly trend direction for 1.00 Lot1
|
GER40 |
||||||
|
Pivot Points |
||||||
|
Profit or loss in $2 |
-10,626 |
-8,501 |
-6,375 |
7,438 |
13,813 |
19,126 |
|
Profit or loss in € |
-10,000 |
-8,000 |
-6,000 |
7,000 |
13,000 |
18,000 |
|
Profit or loss in £2 |
-8,872 |
-7,097 |
-5,323 |
6,210 |
11,533 |
15,969 |
|
Profit or loss in C$2 |
-14,465 |
-11,572 |
-8,679 |
10,125 |
18,804 |
26,037 |
1. 1.00 lot is equivalent of 10 units
2. Calculations for exchange rate used as of 10:30 (GMT) 02/03/2022
Fortrade recommends the use of Stop-Loss and Take-Profit, please speak to your Senior Account ManagerClient 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 Senior Account ManagerClient Manager for more detail