Stock Markets – GER30 approaches the 200DMA

GER30, Daily             

Global stock markets achieved new highs during July and continue to grind ever higher as the only game in town for investors. However, the rate of increase has slowed and with the end of the earnings season and August upon us investors may be looking to realise some profits and square positions for the holiday month.

A scan of the equity markets (we are already SHORT UK100 from July 14) highlighted the GER30.  A failure to break 10,400, pressure on the key banking and automotive sectors and persistently flat PMI figures has seen two big down days on the key German equity market.  The misalignment of the moving averages suggests that we are at best in a consolidation phase.  My preference would be for a short position if the 200 DMA was breached and broken significantly on the daily time frame. This would mean a clear close below 10,077 which would generate Target 1 at  9960 and Target 2 9782.


Click here to access the HotForex Economic calendar.

Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE! The next webinar will start in: 

Stuart Cowell

Market Analyst


Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.