As we expected the DAX 30 completed its Bearish Flag Pattern breaking lower last Tuesday, October 1st below the bottom trend line of the pattern. This was on the back of the “not-so-spicy” BREXIT deal made by the U.K. Prime Minister, and Parliaments enraged responses to him as well. The offer made to the Euro was underwhelmingly received, the Parliament feel that PM Boris Johnson is sabotaging the negotiations.
Northern Ireland has turned up the heat making sure that the PM request an extension for a trade deal before the U.K. is forced to leave the European Union.
Unfortunately, we at Invest Wright don’t see a positive outlook on the BREXIT deal, in so, we expect a lower move to €11,500 on No-Deal BREXIT. Prime Minister Johnson has stated his intent to leave with no deal, the EU is not budging, and October 31st (Halloween) is the deadline. To mix in, Germany is starting to see and experience recession fears as a slowing manufacturing section and massively higher export taxes and levies leave cost up and profits lower in the German economy.
THE PLAY: A break and close below €12,000 will trigger a sell for us.
Northern Ireland has turned up the heat making sure that the PM request an extension for a trade deal before the U.K. is forced to leave the European Union.
Unfortunately, we at Invest Wright don’t see a positive outlook on the BREXIT deal, in so, we expect a lower move to €11,500 on No-Deal BREXIT. Prime Minister Johnson has stated his intent to leave with no deal, the EU is not budging, and October 31st (Halloween) is the deadline. To mix in, Germany is starting to see and experience recession fears as a slowing manufacturing section and massively higher export taxes and levies leave cost up and profits lower in the German economy.
THE PLAY: A break and close below €12,000 will trigger a sell for us.