Dax still does not able to cross 6800 level convincingly but it is good to see that it got the support of 6600. During last few weeks I was talking about the bearish pattern which can take DAX around 6100 but after this week’s moves, the chance of triggering that is less because on the basis of sound technical method it is out of that bearish pattern. Now in spite of that if something like that happens then it will be consider as an exception, here I must say that this opinion will be subject to up gradation if DAX moves around 6900 to 6400 for some more time. In that case the chance of going 6100 level will be still there but I will think differently.
Until DAX drops below 6600 level there is a good chance that it may test 6900 level. As I said in my earlier reviews that if DAX is able to stay above 6900 level then we may see good days for it but that may not necessary be a story for coming week.
In spite of better last day, still I am not too much confident about levels above 6900. DAX is making higher highs and higher lows, considering that if DAX breaks 6600 then I don’t think that it is going to drop below 6400 level, in fact we may consider around 6562 (50% retracement) as important support level for it.
NOTE: Please see the disclaimer of this blog.
Due to some problem I am giving this week’s postings much earlier and in tomorrow, if I able to give stock market review then I will post there if I have to do any change on this.