Trade of the week: long DAX 40
Since an Elliott Wave ‘abc zig zag’ correction may have ended at Friday’s low, we would like to go long the DAX 40 index or front month futures contract above Friday’s high.
We will set a stop loss below last week’s low and an upside target around the 18,500 mark.
(AI Video Summary)
Previous USD/JPY and Dow Jones trading outcomes
In this week's "Trade of the week" video, Axel Rudolph focuses on his previous trading strategies involving the USD/JPY currency pair, the Dow Jones, and notably, the DAX 40 German stock index. The discussion highlighted a short position on USD/JPY that's approaching its stop loss at ¥152 due to an ineffective bearish bet. Despite missing an optimal entry point on the Dow Jones, it's was noted as a potentially profitable short-lived trade.
This week's trading opportunity
The primary insight revolves around a bullish perspective on the DAX 40, theorised to conclude an 'abc zig zag' Elliott Wave correction, suggesting an impending rise to new highs. The recommended action is going long on the DAX 40 just above a recent high of 18,224, with a close watch on making new record highs, setting a stop loss below the last low, targeting around the 18,500 mark.
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