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

Dax is trying to break crucial levels of 7400 which it failed to break during last few months. I think this week Dax has proved important thing that it is not going to follow the lower highs and lower lows trend which many other leading stock indexes are following. Now Dax is in a position where it may create a bullish pattern but that pattern demands Dax to fall from these levels. The way it moves during last few days I think even if it drops, it will be just around 7200 ranges.

Here it is important to take new position after Dax signals full confirmation of breaking 7400 levels. Dax is in short-term over-bought level so even if it breaks 7200 then better support is at around 7000 ranges. I will think differently when Dax will go below 7000 levels.


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On the other hand if it shows flat movements around 8000 range in initial days of the coming week then there is a chance that it may take a decisive call in later days. Considering the recent trends it has the chance to test higher levels may be around 8200 but that will be a very aggressive call after taking in to account the movement from last December. I will worry about the downside when Dax will be testing levels below 7600 ranges.
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