FTSE tests important 10 year trend line resistance at 7140/50
|Daily Forecast - 09 January 2017
Eurostoxx March contract
EuroStoxx holding above 3308/05 allows us to re-target 3323/26. On a break higher look for 3341/44 & perhaps as far as 3370/74 this week.
First support at 3296/93 again today but below 3290 risks a test of support at 3272/70. Longs need stops below 3265 with further losses targeting a buying opportunity at 3244/40.
Ftse March contract
FTSE tests important 10 year trend line resistance at 7140/50 & the close above here on Friday was a positive signal. Shorts at 7140/50 need stops above 7165 again today & as I write these have not been activated. A break higher is a buy signal targeting 7195/99 & 7233/36.
Failure to hold above 7130 risks a test of first support at 7110/00. As long as this holds the downside, bulls remain firmly in control. A break lower risks a slide to 7060/55 for a buying opportunity with stops below 7030.
Dax March contract
Dax closed above resistance at 11600 & with bulls still in control, holding above here targets 11617 before last week's high at 11650. A break higher in the bull trend always likely eventually targeting 11670/680 then 11780/790 & perhaps as far as the 2015 summer high at 11800/810 this week.
Holding below 11590 however retests support at 11560/555 before strong support at at 11529/28. A low for the day likely but longs need stops below 11485. Further losses target 11455 then 11400/390 but look for a buying opportunity at strong support at 11360/350.
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