I was expecting that if DAX breaks 6500 level then it will get support at 6400 and I was also expecting reversal of trend in middle to later part of this week.
Last few day’s moves were good; here it is getting resistance at 6600. From here DAX has two alternatives for upside movement. It may move around 6600 level for few days and then may make up moves in coming Tuesday or Wednesday; on the other hand it may just make one or two day’s little correction and then makes the up moves. For both these two conditions I will give emphasis on moves above 6600. Last day I was talking about lower highs and lower lows pattern, if it follows that then it will not rise above 6875 in coming days.
Now if it does not cross 6600 level convincingly then it will start dropping to test lower levels. In this case it may drop below 6400 levels and may be testing 6200 levels. In case of violent selling things can be worse.
Technical indicators are not showing any specific trend for sure so emphasis must be given in 6600 level and on movements in early days of the coming week because these can set the trend for whole week. Here I must say that this week DAX was trying to make a base around 6400 level so in the downside that level is important.
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