DAX couldn’t able to cross 6400 level and as I was expecting DAX dropped middle to later part of this week. In the last day things were really bad for DAX.
Though in last day DAX dropped below 6100 level but still I want to see couple of days more to take any new call. As I said in last week that 5800 will be an important support level for DAX and if it breaks that then it has the option to test lower levels may be around 5400. Looks like it is making lower highs and lower lows, in the upside it has a resistance at 6200 level.
I don’t know for sure what DAX is going to do in coming week! I think now emphasis should be given on the moves of early days of the coming week. If DAX tests lower levels then we must think about 5800. Technical indicators are not showing that DAX is too much over-sold condition so more drops are quite expected. On the other hand there is a possibility that DAX may make small moves to test levels around 6200 in the middle to later part of the week. Though these predictions will not be true if in early days of the coming week DAX reverses in a big way after last day’s big correction.
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