Technical forecast for Dax

dax

Dax Sep13 unexpectedly headed higher and broke our upper resistance to reach 8019. We are establishing a range in what looks like a continuation pattern. This indicates we will eventually break lower but in the mean time the upper parameters of the range are 8035/45. Only a break above here is positive & should reach 8076 & then fill the gap up to 8131.

Below 7950 is more negative & could see 7900/90. Any longs here need stops below 7870 as this risks a test of Fibonacci support at 7807 but a break lower targets short term trend line support at 7770/65. If we cannot bounce from here we should test last week’s low at 7731 with the 200 day moving average just below at 7720 so a low for the day with in this band is likely.

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