FTSE first support at 6990 then 6975/70 could hold the downside
|Daily Forecast - 21 October 2016
Eurostoxx December contract
EuroStoxx 200 week moving average resistance at 3084/87 is key to direction & bulls require a weekly close above of course. Further gains test the September high at 3100/03. Further gains targets 3117 then the March high in this year's sideways trend at 3130.
Failure to beat 3084/87 keeps us trading sideways targeting minor support at 3060/56 then better support at 3049/46. However further losses target yesterday's low at 3036 before strong support at 3028/25. Try longs with stops below 3015.
S&P December contract
Emini S&P trend line & 100 day moving average come together at 2136/38 today. Shorts need stops above 2144. A break higher puts bulls back in control targeting 2148/50, 2155/56 & perhaps as far as the October high at 2164.
Failure to hold above 2134 is more negative & it is the scenario I am hoping for in order to get some direction & movement from this market. We target 2130/29 then 2120/18. A break below 2116 targets the September low at 2107.
Dax December contract
Dax bulls gaining control this week...can we finally build a trend? Above 10744 targets the September high at 10770/780. Bulls require a break above this year's double top high at 10804 to restart the bull market so a weekly close tonight above would be a great start & targets 10860/870 then 10990.
Failure to hold above last week's high of 10680/685 is less positive but 1 month trend line & short term Fibonacci support at 10660/650 is the most important support of the day. Try longs with stops below 10620. A break lower however ensures we remain in a sideways trend line initially targeting 10590/580 then 10560/550. If we continue lower support at 10510/500 could hold the downside but longs need stops below 10475.
Ftse December contract
FTSE first support at 6990 then 6975/70 could hold the downside. However further losses risks a slide to quite good support at 6945/35. Longs need stops below 6920.
A break above 7020 targets 7050/55 perhaps as far as 7068/72. Obviously the 7090/93 high for this year is important. We then meet further IMPORTANT 9 YEAR TREND LINE RESISTANCE AT 7135/45!
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