Trade of The Day – DE40

Facts:

• The RSI level remains close to the neutral 50 level [46.1].
• The EMA 50, 100, and 200 moving averages maintain upward momentum.
• The moving averages are accelerating, as shown by the EMA50 crossing above the EMA100 and the widening divergence between them.
• The pattern of highs and lows over the last 3 months indicates increasingly higher upward moves.

Trade idea : Long (buy) position on DE40 at the market price.

• Target: TP1: 26000, TP2: 27100
• Stop: 22050

DE40 (D1)

Source: xStation5

OPINION:

Currently on the DE40 chart, another episode of conflict can be observed between the medium-term sideways trend and the short- and long-term uptrend. The long-term trend remains clearly bullish despite the prolonged, expanding consolidation ongoing since 2025. A medium-term bearish signal is coming from the MACD, however it is the aftermath of a sharp and deep correction from February, a type of correction that is cyclical and characteristic for the DAX index.

Methodology and assumptions:

• The recommendation is based on technical analysis of the chart, in particular EMAs and Fibonacci levels.
• Target levels were determined based on FIBO levels.
• The protective stop-loss order was set based on a favorable risk-to-reward ratio and based on a FIBO level and the EMA200.