GER30 Strategy- Renewed EU-US Tariff Dispute May Cause Significant Decline in GER30

Fundamental Analysis:

The U.S. presidential election vote count is ongoing, with Trump currently leading in electoral votes. The market anticipates a high likelihood of Trump becoming the next president. Based on his previous presidency and recent campaign statements, the market expects that he may reinstate trade barriers upon taking office, potentially reintroducing tariffs on European products such as automobiles. This could impact economic development in Europe, leading to a significant decline in GER30. However, as the election results are still not finalized, any reversal in the outcome could cause substantial market fluctuations, and investors are advised to stay alert.

Technical Analysis:

On the hourly chart, GER30 initially opened with an upward gap but quickly reversed downward, with successive bearish candles breaking previous lows, indicating a weakening trend. Although the KD indicator is in the oversold area, suggesting a potential rebound from the deep decline in the short term, it is advised to avoid short-term long positions against the downtrend. Instead, consider a light short position at the rebound resistance level of 19,250, with a target of 19,040 and a stop loss at 19,330.

Trade Recommendation:

Consider a light short position at the rebound resistance level of 19,250, with a target of 19,040 and a stop loss at 19,330.

Support Level: 19,040 Resistance Level: 19,250

Disclaimer: The above content is for reference only and does not represent the platform’s stance. Stick to your own strategy and exercise proper risk control.