English
Trade of the week: long DAX 40
We would like to go long the DAX 40 index around 21,150 on a short-term technical buy signal. The upside target is around the 21,500 mark or above with a stop loss below Monday's low at 20,669.
(Partial video transcript)
This week's trading opportunity
Axel Rudolph: Hello and welcome to this week's "Trade of the week" on Tuesday 22nd April, 2025. Let's get straight into it and let's have a look at today's "Trade of the week", which is to go long the DAX 40 contract. The index, as you can see, is rising. Earlier this morning we had a perfect entry, but the DAX has already risen by about 180 points since then, but it's still a buy signal for me.
Reasons for choosing this trade option
So, how do you play this? Well, basically, the reasoning is US markets came off yesterday as President Trump once again said that he wasn't very happy with the Federal Reserve (Fed) not lowing rates and wants to replace the Fed chair, Jerome Powell. On that, news sentiment soured and US stocks sold off quite sharply. And you can see here that we did the same on the DAX yesterday.
But today we're heading back up again. So, I believe that we're now starting to break through this downtrend line. And you can see, we are currently going through a resistance line here. And, I believe that we will break through it.
So, for that reason, I would like to go long that the DAX 40. So, it's a purely technical trade because we know where our stop-loss is, our stop-loss is below yesterday's low. So it's just below here. And our potential upside target is probably where we made the high on 9th April, or probably slightly higher than that. So around 21,500.
So today's "Trade of the week" is to go long the DAX 40 index at around current levels, which are, let's say, 21,150 with a stop-loss below Monday's low at 20,669 and an upside target around 21,500 or above.
Connect with us
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
Professional clients trading spread bets and CFDs can lose more than they deposit.
Options and futures are complex instruments which come with a high risk of losing money rapidly due to leverage. They’re not suitable for most investors. Before you invest, you should consider whether you understand how options and futures work, the risks of trading these instruments and whether you can afford to lose more than your original investment.
Trading stocks and shares ‘on margin’ within a US options and futures account – meaning that you only finance part of the cost of acquiring a position in a security – carries additional risks over buying securities on a fully funded basis and may result in losses exceeding your original investment. Trading on margin will also result in additional costs to you as the investor and any securities purchased using margin may be held as collateral by the lender, restricting both your rights as shareholder, and your ability to use the securities until the margin trade is closed. You should familiarise yourself with these risks before trading on margin.
The value of shares, ETFs and other ETPs bought through a share dealing account, a US options and futures account, a stocks and shares ISA or a SIPP can fall as well as rise, which could mean getting back less than you originally put in. Past performance is no guarantee of future results. Some ETPs carry additional risks depending on how they’re structured, investors should ensure they familiarise themselves with the differences before investing.
Share dealing and IG Smart Portfolio accounts provided by IG Trading and Investments Ltd, CFD accounts and US options and futures accounts are provided by IG Markets Ltd, spread betting provided by IG Index Ltd.
IG is a trading name of IG Trading and Investments Ltd (a company registered in England and Wales under number 11628764), IG Markets Ltd (a company registered in England and Wales under number 04008957) and IG Index Ltd (a company registered in England and Wales under number 01190902). Registered address at Cannon Bridge House, 25 Dowgate Hill, London EC4R 2YA. IG Markets Ltd (Register number 195355), IG Trading and Investments Ltd (Register Number 944492) and IG Index Ltd (Register number 114059) are authorised and regulated by the Financial Conduct Authority.
The information on this site isn’t directed at residents of the United States, Belgium or any particular country outside the UK and isn’t intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
