Technical forecast for Dax

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Dax Sep13 retested August highs at 8464 & as long as this holds we have a bearish double top in place. With the market overbought in the short term & a diverging stochastic on the daily chart this is always a risk. Immediate support is 8409 /01 so any longs need stops below here for a test of 8382/74. A bounce from here looks likely today but again longs need stops below the gap at 8364. We should quickly see 8349 but there is scope for a test of good support at 8323.

A break higher cannot be ruled out in this bull run of course, and could target 8487 before 8530. Above here we meet this year’s high at 8561.

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