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Trade idea: Sell DAX after “amazing” performance
Steve O’Hare from First 4 Trading is looking to the sell the DAX, as its "amazingly" strong performance this year continues. He thinks a correction is "well overdue".
Steve adds we have seen strong economic data out of Germany; a higher than expected IFO survey last week and a continued gain in Manufacturing PMI survey leads him to expect a rise in overall GDP. He points out that this was in fact highlighted on tradingfloor.com by Teis Knutsen on Friday last week (http://www.tradingfloor.com/posts/unexpectedly-strong-german-supports-dax-242468214).
On the technical side, he says prices gapped open higher on Monday and posted further new all-time highs. However, progress was capped by the top of the bullish channel and reacted lower. He expects this rejection to lead to further selling as bears take heart from the turnaround and bulls book some profit.
As a result, Steve is looking to sell in front of 9300 with stop at 9340 and targets of 9240 & 9215.
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01:13 minutes
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