Technical forecast for Dax

Dax Sep13 has a potential short term head & shoulders forming with a neck line at 8240 so watch this level this week. This did in fact mark the low yesterday but we rocketed higher. We are facing resistance at 8373/79 today & this should remain a challenge but a break higher allows a move towards 8415/25. Be aware that a break above this level negates the head & shoulders pattern to target 8437/42 before August highs at 8464.

Below 8347 is more negative & we should see 8323/20, perhaps 8290/82 below. Any further losses risk a slide to August lows at 8237/31. A break below here then confirms the head & shoulders topping pattern for a measured target of 8062 in the days to follow.