Daily Forecast - 06 January 2016

Dax March contract

Dax

Dax is now oversold short term & the bounce has taken us to first resistance at 10340. A push through 10360 signals a retest of yesterday's high at 10400/403 & perhaps as far as resistance at 10440/450. A good chance of a high for the day but shorts need stops above 10485. A break higher targets only very minor resistance at 10520/530 but a break above here targets the 10560/10590 area. This should be a challenge but a break above 10620 could see prices fill the gap up to 10690.

Failure to beat first resistance at 10340 keeps the pressure on for 10260/250. The downside may be more limited today in oversold conditions but further losses risks a retest of of yesterday's low at 10172. This is not much support so be ready to sell a break below to target December lows at 10120. We bounced off here last time because this was important Fibonacci support & a good chance we will do so again today but longs need stops below 10070. A break lower is obviously negative & targets 10050, 10020, 9960/9950.


Eurostoxx March contract

Eurostoxx

EuroStoxx is now oversold short term so a recovery is possible but we must hold above 3170 this morning to target first resistance at 3190/95. A high for the day certainly possible but a break above 3200 targets the week's high at 3214, perhaps as far as strong resistance at 3225/30. Try shorts with stops above 3240. Be ready to buy a break above here to target 3260/63 then an excellent selling opportunity at 3285/90.

Below 3170 is less positive & targets 3150/45. Further losses retest support at December lows at 3133 & this week's low at 3127. A break below 3120 is a sell signal & targets 3110 then 3084/80. If we continue lower look for 3064/60 then 3044/42. Further losses risks a retest of October lows at 3031/26.


Ftse March contract

Ftse

FTSE first resistance at 6115/20 again today should be the main challenge for bulls but shorts need stops above 6125. A break higher targets minor resistance at 6145/50, perhaps as far as a selling opportunity at 6175/80. Shorts here need stops above 6195. If we continue higher look for the next target & selling opportunity at 6221/25.

Failure to beat first resistance at 6115/20 re-targets quite good short term support at 6080/75. If we continue lower look for 6045/41 then support from 6025 down to this week's low at 6016. Any longs here need stops below minor support at 6000. Be ready to sell a break below 6000 to target 5980/79 then 2 week lows at 5948/46. A break below here could target 5919/16.

The contents of our reports are intended to be understood by professional users who are fully aware of the inherent risks in Forex, Futures, Options, Stocks and Bonds trading. INFORMATION PROVIDED WITHIN THIS MATERIAL SHOULD NOT BE CONSTRUED AS ADVICE AND IS PROVIDED FOR INFORMATION AND EDUCATION PURPOSES ONLY.

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