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Trade idea: Buy DAX on US budget deal hopes
Joe Neighbour from Central Markets is looking to buy the DAX as European markets have surged on hopes of a US budget deal.
The rally came after Republicans said that they will offer a six-week extension to the nation’s borrowing limit in exchange for negotiations on spending.
Joe explains we have seen the completion of "bull flags" on the DAX and CAC, which suggest more upside in the near term. In additions, buyers were "very active" throughout Thursday's session.
As a result, Joe will be looking to buy a move lower at around 8685. For traders looking for a tight stop, Joe suggests 8610, and for traders happy to give the trade a bit of space, he advises 8480.
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00:52 minutes
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