GER40

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.
• DEVELOPING GLOBAL BANKING CRISIS: THE GLOBAL BANKING SYSTEM REMAINS UNDER PRESSURE AFTER UBS BOUGHT OUT CREDIT SUISSE ON MARCH 19 IN SWITZERLAND. The global banking system has started to rapidly change over the past few weeks after three bank failures in the US (Silicon Valley Bank, Silvergate Bank and Signature Bank), which crisis spreads across the globe. Many likened the current crisis to that one of 2008- 2009 when one of the largest investment banks back then in the US, Lehman Brothers, collapsed. This is expected to keep the markets under negative pressure, with European and German stocks tilted to the downside.
• EUROPEAN CENTRAL BANK (ECB) RAISED INTEREST RATES TO THEIR HIGHEST SINCE 2008 (3.50%), DISCOURAGING INVESTMENTS IN STOCKS. The ECB raised their benchmark interest rate by 50 basis points to 3.50% (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.
• 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 33% since early October 2022, testing its highest since February 2022.

GER40, March 20, 2023
Current Price:14960

Example of calculation base on weekly trend direction for 1.00 Lot¹

1. 1.00 lot is equivalent of 10 units

2. Calculations for exchange rate used as of 09:20 (GMT) 20/03/2022
Fortrade recommends the use of Stop-Loss and Take-Profit, please speak to your Senior Account ManagerClient Managerregarding 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