Getting Ready to Close the Dax Signal Below MAs, For More Than 300 Pips - Forex News by FX Leaders
The climb might be over now at MAs, so we closed the buy signal

Getting Ready to Close the Dax Signal Below MAs, For More Than 300 Pips

Posted Monday, August 3, 2020 by
Skerdian Meta • 1 min read

Stock markets made quite a reversal on Friday and took a decent dive lower. They have been bullish since the middle of March, after the big reversal and have been pushing higher without looking back. Central banks and governments have thrown the kitchen sink at the economy and they have also borrowed their neighbour’s sink to help.

This has kept the stock markets well bid, with the German Dax index climbing to 13.350 poins two weeks ago. But, Dax started retreating lower after the small upside-down hammer candlestick on the daily chart, which is a bearish reversing signal after the climb.

The sentiment started turning negative last week, while the USD finally got some bids on after declining for many weeks. So, stock markets retreated lower in what seemed a small crash, but looking at larger time-frame charts, we see that such pullbacks are usual and the bullish trend has resumed again soon after.

So, we decided to go long and bought Dax30, which we just closed for more than 300 pips today, so a good start for the month. MAs are providing resistance right now on the H4 chart, so we decided to close our signal, but will open another buy trade lower if Dax retreats lower again.

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About the author

Skerdian Meta // Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
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