Daily Forecast - 10 March 2016
Eurostoxx March contract
EuroStoxx holding below 3030 again today re-targets first support at 3000/2995. A break below 2990 re-targets the best support of the day at 2970/65. Obviously this is key, but a break below 2955 is a sell signal & targets 2945 then 3 week bull trend line support at 2935/30. This is the last line of defence for bulls this week. A break below 2920 should therefore act as another sell signal.
Important resistance again today at late January high at 3055/60 & strong longer term trend line resistance at 3065/70 in severely overbought conditions. **TO REPEAT: There is a very high risk this area sees an end to the bear trend recovery.** Shorts need stops above 3090. Bulls really need a close above 3100 to feel more confident longer term.
Ftse March contract
FTSE first support at 6100/6090 then next target & support at 6070/65 is probably the most important of the day. If we break lower this is a sell signal & we could target minor support at 6035/30. A break below 6010 targets 5970/65.
Holding above 6140 tests resistance at 6170/75. Further gains could target strong trend line resistance at 6195/6200. We have further strong resistance at 6225/35 & 200 day moving average resistance at 6255/60 so there are many obstacles for bulls in severely overbought conditions. Only a daily close above here could be seen as positive.
Dax March contract
Dax first support at 9720/10. A break below 9680 could re-target the most important support of the day at 9615/05. Longs need stops below 9575 today. A break lower triggers could accelerate downside moves targeting minor support at 9510/05 then 9450/40.
Minor resistance at 9748/50 but above here targets 9800/10, perhaps as far as resistance at 9836/40. Further gains today target 9900 & resistance at late January highs at 9923. It is only a daily close above 10000 that could put bulls back in short term control. We could then target 10050/60 & but strong resistance at 10100/110 is the next target where the bear market could resume. Even above here we meet the 100 day moving average at 10200, another big obstacle.
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