Germany 30 Technical Analysis | Germany 30 Trading: 2018-12-21 | IFCM India
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Germany 30 Technical Analysis - Germany 30 Trading: 2018-12-21

Slower German business activity bearish for DE30

German private sector activities expansion slowed in December. Will the DE30 continue declining?

German economic data were negative recently: growth of activity in private sector slowed in December according to preliminary data when a slight acceleration was forecast. Markit’s composite purchasing managers index for Germany slipped to 52.2 from 52.3 when an uptick to 52.4 was expected. Expansion slowed in both manufacturing and services sectors. Slowing growth is bearish for DE30.

DE30 descent below MA(50) intact 12/21/2018 Technical Analysis IFC Markets chart

On the daily timeframe the DE30: D1 is below the 50-day moving average MA(50) which is falling, this is bearish.

  • The Parabolic indicator gives a sell signal.
  • The Donchian channel indicates downtrend: it is tilted lower.
  • The MACD indicator gives a bearish signal: it is below the signal line and the gap is widening.
  • The Stochastic oscillator has breached into oversold zone, this is bullish.

We believe the bearish momentum will continue after the price breaches below the lower boundary of Donchian channel at 10480.58. This level can be used as an entry point for placing a pending order to sell. The stop loss can be placed above the upper Donchian channel at 11091.03. After placing the order, the stop loss is to be moved every day to the next fractal high, following Parabolic signals. Thus, we are changing the expected profit/loss ratio to the breakeven point. If the price meets the stop loss level (11091.03) without reaching the order (10480.58), we recommend cancelling the order: the market has undergone internal changes which were not taken into account.

Technical Analysis Summary

PositionSell
Sell stop Below 10480.58
Stop loss Above 11091.03

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This overview has an informative and tutorial character and is published for free. All the data, included in the overview, are received from public sources, recognized as more or less reliable. Moreover, there is no guarantee that the indicated information is full and precise. Overviews are not updated. The whole information in each overview, including opinion, indicators, charts and anything else, is provided only for familiarization purposes and is not financial advice or а recommendation. The whole text and its any part, as well as the charts cannot be considered as an offer to make a deal with any asset. IFC Markets and its employees under any circumstances are not liable for any action taken by someone else during or after reading the overview.

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