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SHORT trading signal DAX index - DAX

Signals and Price Analysis Equity Indices

Good morning Traders,

Today August 31 we signal an entry on the SHORT signal of August 26 detected by Lift-Off on the main European index, the DAX index of the German market.

Today the price is at the same quotation as the August 26 close, so we propose the Short on the index.

In closing the day which registers a loss of -2.26%, closing at 12971 EUR making Lift-Off's red band flare up again.

The market fell as a result of Federal Reserve Chairman Jerome Powell's words, the equities market went down due to economic uncertainty and the monetary policies that will have to be put in place to combat a steadily rising inflation.

Below chart of the DAX - with the signal detected by Lift-Off

The news that caused the DAX

"In the minutes, the ECB states that inflationary pressures have intensified and that maintaining the anchor of inflation expectations depends on the Governing Council's decisive action in the face of the worsening inflation outlook."

However, at Renta 4 believe that "it is possible that the ECB may not be able to raise rates as much as the market expects (to 1.75%-2% by mid-2023) in the face of a recession that seems inevitable in economies like Germany."

Source: investing.com

Signal Chart August 31, 2022

SHORT- DAX

Input price: EUR 12928
Stop Loss: EUR 13389.50
Take profit 1: EUR 12401.20

R/R: 1.17