Technical forecast for Dax

dax1

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.

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