On May 16, as the second half of the month starts, there exist an opportunity to earn money along with the German DAX, the French CAC 40 and the Japanese Nikkei 225 Indexes, which demonstrated high efficiency during the above-mentioned period of time.
Today, the preference will be given to the German Stock Index as an indicator of the stock market not only in Germany, but also in the European Union. In addition, the research on the half-month effect, that showed a significant average return per transaction, proves the foregoing fact.
From the beginning of January to the beginning of March of this year, the DAX Index decreased by 20%, but today has returned half of this decline.
At the moment, on the daily index chart, the potential completion of the corrective movement after the March growth is observed. The price steadily reached the Fibonacci retracement levels of 14.6%, 23.6%, 38.2%, 50%, 61.8%, and now it is strengthening its position, moving up to Fibo 23.6%.
In a situation of continuing geopolitical instability, uncertainty and growing sanctions’ pressure, the Index is likely to enter sideways movement with boundaries in the form of 0% - 50% Fibonacci retracement levels, which correspond to price levels of 14930 and 13690.
Possible options for entering the market are:
1. Buying the DAX index from the market at the current price. Target orders Take Profit 1 and Take Profit 2 can act marks 14580 and 14930 respectively. Limit the losses can be a Stop Loss order below the mark 13990. You can also close the position at the close of trading on May 31.
2. Buying the DAX Index during the price reduction to 13990. Then the target orders for Take Profit 1, Take Profit 2 and Take Profit 3 should be 14350, 14580 and 14930, respectively. The limit losses can be confined with a Stop Loss order below 13690. Close the position at the trading enclosure on May 31.
Attention!
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This content is for informational purposes only and is not intended to be investing advice.
