Last week I was not sure about any specific levels for DAX in the upside, as it is in over-bought zone and I was expecting correction at some point of time.
So now it looks to me that it may again test 6500 level in early days of this week and from there if it drops then there is a chance that it will test level 6400. Though it is in early stage but if it drops below 6500 level then it may follow lower highs and lower lows trend, which indicates bearish environment. In case of any big sell off we may see DAX below 6200.
If it drops in early days of the coming week then DAX may come under over-sold zone. So a reversal may come in middle to later part of the coming week, here also that 6500 level in important. If DAX maintains 6500 level then it has more chance to go upside in coming days. Then important level to watch is 6880, if DAX breaks that then it may again test higher levels and investor may cover their short-positions here. But this type of expectation is too much for now.
I will give more emphasis on 6500 level for DAX.
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