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.
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