DAX Signal Update: German DAX Hit Our Second Take Profit Target at 11,100, a 505 points move!
Our DAX Short trade at 11,605 from November 2nd has hit our Second Take Profit Target at 11,100 yesterday, a 505 points profit to our followers. While the German DAX continues to decline, we continue to book profits from that move. This is our second short signal on DAX this year with multiple take profits along the way, as we stayed short since July 25 and recommended traders to do the same. By doing so, we did not only save our followers from bad trades in a declining asset, but we turn that decline into a profit machine. Yesterday we covered our remaining short position and now we will wait for the chart to reset and provide us another profit opportunity.
12/11/2018 update: Our DAX Short trade at 11,605 from November 2nd has hit our First Take Profit level at 11,400 and we book a 205 points move. While the German DAX continues to decline, we continue to book profits from that move. Our Second Take Profit as mentioned before is at 11,100. After closing partial position with profit, traders should protect themselves with a stop loss order at our entry level 11,605. This way this trade will remain profitable with no risk for the remaining of the position.
We will continue to update the trade, once we will get close to our next target.
This is a trade update on our second short DAX trade we posted early this month. The DAX Index continue to trend down and price chart look technically weak.
We adjust our First Take Profit Target to 11,400 price level and maintained our 11,100 target as our Second Take Profit Target. At this point traders can also adjust their STOP LOSS level to protect profits by lowering the level to our entry price.
Following our very successful Short Signal Trade on the German DAX back in July 25 (see prior articles about the Short DAX Trade), we saw the index continue decline down to the 11,050 level and then a price bounce to current 11,615 level. The German DAX continue to suffer from US / EU “Trade war” as mentioned by our prior articles and currently another uncertainty added to market when Chancellor Angela Merkel announced early this week that her party’s miserable performance in weekend elections has meant for her that her government coalition lost credibility. Accordingly, she informed that due to the declining support, she will step down as the party leader and will retire from politics completely when her current term ends in 2021. In addition, Italy economy is suffering again as the country can’t approve their budget and Germany is at risk due to the high loan amount provided to Italy. All of the above creates high uncertainty regarding German Economy until new election will take place. Investors tend to avoid uncertainties when investing and we believe that price will continue to trend down. In order to profit from the continued decline in the German DAX, we suggest traders take advantage of current price bounce up and enter a SHORT position at current price level 11,615 with a First Take Profit target at 11,100 price level.