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DAX forecast for coming week ended 24th August, 2012.

In the last day DAX crossed 7000 level but I am not pleased with that move, I was expecting bigger moves. Now if Dax continues this positive trend then it may test 7200. But the way it is showing small moves I don’t think that even if it goes up, it will be testing 7200 levels in coming days (unless things change dramatically in coming week above 7000).

On the other hand DAX may drop from this level, considering its over-bought zone. In that case its initial support level will be 6800 and later 6600. Last week I was talking about the movements around 6400-6900; unless DAX is coming out from this zone risk of dropping around 6100 level will be there.

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.


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