If you had read our previous analysis posted regarding the German Index DAX (http://profitablerisktaking.blogspot.gr/2012/11/dax-support-and-resistance-levels.html), you would have covered your long positions and even might have shorted this index below 7400 or even 7140. Today DAX is trading just above 7000 level with potential to decline further towards 6850. Support levels are being broken and as mentioned before, the downward moves feel impulsive whereas any upward bounce looks corrective.That was our initial warning signal when DAX was trading at 7350.
Our first target for a potential bottom in DAX is near the 38% retracement.6850-70 area should provide a strong support for this decline to pause.
Trend remains downward biased and resistance levels at 7150, 7220 and 7300.
Support at 6870.
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