A favorable response out of Germany in the last few weeks to the economic and geopolitical data leading news headlines. The German Dax rallied a full +2.38% on the week before settling up +1.42%. This is off the back of comforting U.S. - China trade negotiations looking up. As a major exporter, Germany will benefit massively from a favorable deal between the two countries.
In addition, as the largest economy in the European Union, the BREXIT negotiations ending in a good light Friday. The deal was listed by analyst as favorable for the E.U., and plus for German traders and investors.
From a technical perspective, we have changed our forecast. With such strength in the market, it invalidated the downside continuation pattern and rallied massively to 12,820.00 The last 3 days of trading saw a range of 12,600.00 to 12,700.00 indicating a correction may be forming.
THE PLAY: A close below 12,600.00 on the Daily will signal us to sell into the correction before a higher rally overall. Target 12,250.
In addition, as the largest economy in the European Union, the BREXIT negotiations ending in a good light Friday. The deal was listed by analyst as favorable for the E.U., and plus for German traders and investors.
From a technical perspective, we have changed our forecast. With such strength in the market, it invalidated the downside continuation pattern and rallied massively to 12,820.00 The last 3 days of trading saw a range of 12,600.00 to 12,700.00 indicating a correction may be forming.
THE PLAY: A close below 12,600.00 on the Daily will signal us to sell into the correction before a higher rally overall. Target 12,250.