Sunday, November 18, 2012
Dax Monthly Chart
German DAX Index closed at 6950 (Close on Nov 16, 2012). We attach our monthly chart below:
If we read above chart we see Dax is facing strong resistance from falling trend line connecting 2007, 2008 and 2011 highs. However, It is too early to conclude Dax is going lower and make a strong bearish view at least now looking at current PE below 14. We must watch rising trend-line from 2011 lows which may give support to Dax in next few weeks. However, If we see Dax below 6500 we can make a case for extreme bearishness.