Technical forecast for Dax

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Dax dipped towards good Fibonacci support at 8292 & as expected we got bounce from here as we bottomed at 8298. Resistance at 8412/25 held the bounce unsurprisingly & could do again today with the outlook still negative but a break higher targets 8441/51 & a high for the day possible. If however we get a Friday squeeze higher look for 8476/80 & a break higher from here could test this week’s high at 8530.

Immediate support is 8380/75 then 8353/47. Failure here could see a retest of support at 8298/92 & a low for the day possible again. However we certainly cannot rule out a break lower so we need tight stops on any longs below last week’s low of 8260. Next target 8235 & possibly 8217/10.

Jason Sen began his career in the options pits on the trading floor of LIFFE in 1987 at the age of 19, making markets on his own account. In 2001 when the trading floor closed he successfully made the transition to day trading on computer screens. Jason always had an interest in technical analysis throughout his trading career but began to study this area in depth from 2006. www.daytradeideas.com has established itself as the leading provider of... More