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DAX forecast for coming week ended 20th July, 2012.

This week DAX has not showing much of an action; it is good to see that it is still maintaining 6400 level. There is not much change in DAX from last week, except the fact that it has created some kind of base here.

So in this moment I can say that if it breaks 6500 level convincingly then DAX may try to break its previous high of around 6600 level. Last week DAX has acted to some extent on its bullish pattern now if it crosses 6600 level convincingly then it has a chance of going beyond 7000 level because this week DAX is showing chance of building a new bullish pattern. Since DAX is following higher highs and higher lows trend and if we consider that 6400 was the near-term low even then also more up moves are due from it.

On the other side if it fails to continue its move and drops below 6400 level then 6300 will be its initial support area. Here I must say that in the downside if it tests around 6150 level then it may create a bearish pattern but still this is a very early call as it has not shown many movements this week.

NOTEPlease see the disclaimer of this blog.


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