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DAX forecast for coming week ended 9th November, 2012.

Dax is still moving around 7200–7400 ranges, last week I was suspecting that if it maintains 7150 levels there is a chance that it may make a positive pattern. But even if it triggers the bullish pattern in future the upside is limited. In coming week if Dax maintains around 7260 levels in early days then there is a chance that it may try to test around 7400 levels again.

Last week I was also talking about a probable short-term bearish pattern, as long as Dax stays below around 7450 level that option is open. But now to trigger that pattern Dax has to come below 7200, in fact if it triggers that then we may see Dax around 7000 levels.

If in coming few weeks Dax does not break 7400 ranges then there is a chance of change in environment. 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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