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DAX forecast for coming week ended 7th September, 2012.

I was suspecting about upside moves of DAX but it was pretty flat this week. Right now it is hard to predict but 7000 is important resistance for Dax if it able to cross that then it may again try higher level. Here it is better to wait for concrete evidence.

Last week I was expecting that if Dax corrects then it may reverse from 6800 level but if we go with recent reversals then it can drop up to around 6600 level (around 61.8% reversal).

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.
At past 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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