FTSE entering a correction
|Daily Forecast - 18 May 2017
Dax June Contract
Dax broke the best support for this week at 12640/630 for a short term sell signal targeting 12555 & we bottomed 10 ticks below. We look likely to test probably the best support for today at 12515/505. However I feel longs are risky with further risks to the downside, but if you try use stops below 12470. A break lower is a sell signal targeting 12430/420 & perhaps as far as strong support at 12300/3270 for a buying opportunity.
First resistance at 12630/640 & shorts need stops above 12680. A break higher targets 12705/10 then resistance at 12750/760. Try shorts with stops above 12810.
A weekly close on Friday below 12667 would be a minor sell signal for the start of next week.
Eurostoxx June Contract
EuroStoxx strong support at 3550/45 but a break below 3530 is a sell signal targeting 3518/15 & 3505/00. We could reach as far as support at 3490/80 on the downside today.
Bulls need to stablise prices above 3550 to regain control. Resistance then at 3570/73 & gains are likely to be limited but above 3580 allows a recovery to 3595/3600.
Ftse June Contract
FTSE entering a correction phase perhaps & below 7413 tests Fibonacci support at 7390/86. A break below 7375 risks a slide to last week's high at 7348/47.
First resistance at 7450/55 & gains are likely to be limited but above here targets 7575/78 before the 7496/98 all time high. A break higher targets 7523/36 then 7538/40.
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