DAX 30: Hedging product on the flagship German index

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The News Bulletin 247 team, seduced by the short-term graphic qualities of DAX 30, sees interesting potential in this action which will constitute the underlying of a perfectly adapted turbo Put (8EOLB).

This reactive derivative product, issued by BNPPARIBAS, can be used by the most active investors. The leverage is close to 8.

KEY GRAPHIC ELEMENTS

The gap of August 2, after three characteristic candles, had announced it: the graphical situation has weakened on the flagship German index. The break of 16,000 points made it a lasting resistance, under which a short range phase began, before breaking the lower limit at 15,440 points. Additional potential for reflux exists below the psychological threshold of 15,000 points.

FORECAST

In this context, the most active investors will bet on this bearish scenario (put) by positioning themselves on the turbo Put, issued by BNPPARIBAS and with the ticker code 8EOLB, on DAX 30, at €16,280.

They will take their profits when the underlying reaches 14455,000 points or limit their losses by selling the turbo in the event of crossing 15540,000 points.

Please note that in return for a very significant leverage effect, if the deactivating barrier at 17,000 points (purple trace) is reached by the underlying, the loss of capital is total.