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DAX forecast for coming week ended 2nd November, 2012.

During last few months Dax has take the support of 7200 and now it is trying to break that but except that Dax is not showing anything for sure. 

It looks that Dax may be making a very short-term bearish pattern but this type of pattern has limited success rate. We may get an early indication of that pattern if Dax breaks around 7150 levels and if that bearish pattern fully reacts then Dax may try up to 7000 levels. In this moment one thing look bad for Dax if it breaks around 7000 levels.

As I was saying that Dax is not showing anything for sure so there is a positive side too for it. So long it maintains around 7150 (or 7000 levels) there is a chance that it may make a positive pattern but that needs more time.

Long-term position of Dax is not totally clear, it has both the options open so taking a decisive call is difficult. If we go with long-term reversals then it may drop up to around 6730 level (around 50.0% reversal).


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