Lower factory orders for Germany: -0,9% vs +1,6%
Lower production orders will put pressure on manufacturing companies in the German DAX. Today the index fell below the key level of 12,000. And yesterday, the Diamond Top lower boundary was broken. This gives an opportunity for a long-term short position against the DAX.
The price broke the Fibo support around 12,004. The 12,000 level is now a resistance level. We also see a break out below the diamond top formation that occurred yesterday: 12377, Fibonacci support broken. DeMarker forms an M-shaped formation that points to a potential sell-off in the index. This makes initiating a short position attractive.
Entry: between 12,000-12,005.
S/L: 12,121, previous bottom.
Target: Diamond top formation is a strong trend-reversing signal, in this case the formation is nearly 2000 points high. We expect a potential reversal of the latest upward movement starting from 10,423.
Alternatively: A more precise way to take advantage of the downward movement is a short position in German industrial companies. We recommend: MAN-GR, SIE-GR and TKA-GR.
Read more:
25 Canada Square, Level 33, office 50, Canary Wharf London, E14 5LQ +44 20 3608 6256
World Financial Markets - 0700 17 600 Varchev Exchange - 0700 115 44
Varchev Finance Ltd is registered in the FCA (FINANCIAL CONDUCT AUTHORITY) with a passport in the United Kingdom: FCA, United Kingdom - registration number: 494 045, which allows provision of financial services in the United Kingdom.
Varchev Finance Ltd strictly comply with the statutes of the European directive MiFID (Markets in Financial Instruments). targeting increased efficiency, transparency and uniformity of financial instruments.
Varchev Finance Ltd is authorized and regulated by the Financial Supervision Commission - Sofia, Bulgaria: License number RG-03-02-05 / 15.03.2006
The information on this site is not intended for distribution or use by any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
Disclaimer:
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63,41% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.