This week’s higher levels in DAX makes it comparable to other leading indexes in developed nations, on basis of reversal from June low. DAX made a positive pattern in last week and it has acted to some extent on that. If DAX completely acts on that pattern then it can go up to around 6800. Last day it faced little correction, now it is very important for DAX to maintain 6400 level so that it can make higher highs.
In early days if DAX breaks 6400 level then it can drop more, therefore 6300 will be its initial support area. Here I must say that in the downside if it tests 6150 level then it may create a bearish pattern but this is a very early call.
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