Dax oversold enough to trigger a recovery today but must hold above 10250/245

Daily Forecast - 15 December 2015

Dax December contract

Dax oversold enough to trigger a recovery today but must hold above 10250/245 to target first resistance at 10320/330. We should struggle initially but further gains would target 10385 then strong resistance at 10430/440. A good chance of a high for the day but shorts need stops above 10480. Just be aware that a break higher targets 10545/555 then a selling opportunity at 10615/625.

Failure to beat 10250/245 risks a retest of good support at 10120/110. This is the best chance of a low for the day once again in oversold conditions. Longs need stops below 10070. A break lower targets 10040 then 10020 & 9960/9950.

Eurostoxx December contract

EuroStoxx very oversold now but must beat first resistance at 3195 for a recovery today to target strong resistance at 3230/33. A break above yesterday's high at 3244 however is positive of course & targets minor resistance at 3262/64 then a selling opportunity at 3287/89. Shorts need stops above 3300.

Failure to beat first resistance at 3195 keeps the pressure on for 3175/70 then 3158. If we continue lower look for a retest of 3133 lows. A break lower targets 3120/18 then minor support at 3094/90.

S&P December contract

Emini S&P has bounced well but must hold above 2018/20 to build a recovery today & target minor resistance at 2029/30 then strong resistance at 2035/37. This should be the main challenge for bulls today but shorts need stops above 2041. A break higher sees 2035/37 work as support to target resistance at 2048/49. We should struggle here but if we continue higher this week look for the next target & selling opportunity at 2061/62. Shorts need stops above 2067.

First support at 2020/18 but below here is less positive & targets minor support at 2010/09. Further losses target November lows at 1999/98 but look for a buying opportunity at 1994/92. Longs need wide stops below 1985. Just be aware that a sustained break below 1990 is a sell signal despite oversold conditions & targets 1982/80 then support at 1970.

E Mini Nasdaq December contract

Emini Nasdaq remains volatile as we shot higher to resistance at 4574/79 & again shorts need stops above 4585. A break higher targets resistance at 4600/05, but if we continue higher look for 4618/19 then a selling opportunity at 4632/35. Shorts need stops above 4645.

Below 4570 keeps the pressure on for 4555 then support at 4540/35. Any longs need stops below 4525 with a break lower to target 4516 then 4499/95. If we continue lower look for a retest of 4478/75. Just be aware that further losses target important November lows at 4455. This is probably the most important support of the week now. A sustained break below 4450 is a sell signal & targets 4425/20.