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DAX forecast for coming week ended 31st August, 2012.

I was expecting that DAX may not test 7200 level. Now Dax may try to show couple of good days but it is hard to say whether it is going to break 7200 level in coming week.

On the other hand if it drops in middle to later days then it has an initial support at around 6900 level but it can drop up to around 6600 level (around 61.8% reversal). It has more chance of reverse from around 6800 level but specifying any level is not possible for now.

Dax has formed a medium term bullish pattern and it is also vulnerable to bear trap if it drops below around 6000 level but guessing about 6000 is too much for now.

Last week I was talking about the movements around 6400-6900; unless DAX is coming out from this zone risk of dropping around 6000 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.



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