DAX30 Car Crash: Technical Overview And Trade Opportunity
Slowing down Germany economy, global growth concerns, China factor… The index could not break above 12.000 and failed to enter the buy zone.
Yesterday’s announcement from BMW AG added weight on the Index.
“It’s a measure of just how difficult life has become for car manufacturers that the once boringly reliable BMW AG is struggling too. In the past BMW’s autos unit unfailingly reported an operating profit margin of at least 8 percent. That’s pretty decent for a mainstream carmaker.
Trade tensions, rising raw material costs, and Brexit uncertainty are a heavy burden when you’re simultaneously trying to manage the demise of the combustion engine. Capping the workforce at current levels and announcing a 12 billion-euro savings drive are prudent steps in view of these burdens. The message this sends, though, is that even BMW is more cautious about its future prospects. Shareholders are too.”
Rising wedge pattern is still in action. The breakout of the wedge 11.400 will trigger the bearish move.
We are short in DAX but the conservative traders may wait for the breakout of 11.400 to enter the trade. Our long-term targets are 11.000 10.700 and 10.000. Stop Above 11.700
Entry notification will be sent to members.
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