GER40 Analysis
I have observed that GER40 had a very fuelled rally to 15224 tops this week commencing 16th January 2023. Whilst it might be earnings season, I believe the bearish trend still stands and we are likely to see a strong but gradual reversal back to the yearly trending range where we have the MA100.
Fundamentals:
ECB has hinted on a terminal rate close to 3.25%. The inflation outlook is somewhat still on the higher end even when we are seeing a peak in the EU CPI and the German CPI, I still believe it will take sometime for inflation to return to the ECB's target. China reopening is likely to keep global inflation on the higher end and it will likely make inflation resurface to the upside. The ECB is likely to keep with the 50bps rate hike at its next meeting. EU GDP shows that its still in positive territory. Things are looking fair economic wise.
Technicals:
GER40 had a huge break at the start of the year heading straight to 15224 as its tops; gaining as much as 7% in the first week of 2023. I believe a pullback is inorder and we might see a continued reversal back to the yearly bearish trend before we see a sustained path higher. Alot of this future move will depend on how the fundamental factors play out with time. For now, we can wait for the earnings season to end. The price action is also still far high above the MA100.
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GER40
Fundamentals:
ECB has hinted on a terminal rate close to 3.25%. The inflation outlook is somewhat still on the higher end even when we are seeing a peak in the EU CPI and the German CPI, I still believe it will take sometime for inflation to return to the ECB's target. China reopening is likely to keep global inflation on the higher end and it will likely make inflation resurface to the upside. The ECB is likely to keep with the 50bps rate hike at its next meeting. EU GDP shows that its still in positive territory. Things are looking fair economic wise.
Technicals:
GER40 had a huge break at the start of the year heading straight to 15224 as its tops; gaining as much as 7% in the first week of 2023. I believe a pullback is inorder and we might see a continued reversal back to the yearly bearish trend before we see a sustained path higher. Alot of this future move will depend on how the fundamental factors play out with time. For now, we can wait for the earnings season to end. The price action is also still far high above the MA100.
Follow for more ideas.
GER40
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