DAX has not finished its downside, looking for further correction

Daily Forecast - 19 May 2017

Eurostoxx June Contract

EuroStoxx key to direction should be the 3545/40 area. Below re-target 3518/15 & 3505/00. We could reach as far as support at 3490/80 on the downside but look for a low for the day. A break below 3470 however is another sell signal targeting 3455/50 & perhaps as far as minor support at 3435/30.

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 holding below 7450 targets 7430/25 before Fibonacci support at 7390/85. A break below yesterday's low at 7373 risks a slide to last week's high at 7348/47 but look for minor Fibonacci support at 7325/20.

First resistance at 7465/70 but above here targets the 7496/98 all time high. A break higher targets 7523/36 then 7538/40.



Dax June Contract

Dax topped exactly at first resistance at 12630/640 but shorts need stops above 12680. A break higher targets 12705/10 then resistance at 12750/760. Try shorts with stops above 12810.

I do not think we are finished on the downside yet & I am looking for a further correction. Failure to beat 12640/630 re-targets 12555 before strong support again at 12515/505. Longs could be more risky today...use stops below 12470 if you try again. A break lower is a sell signal targeting 12430/420 & perhaps as far as strong support at 12300/270 for a buying opportunity. A low for the day very likely but longs need stops below 12220.

A weekly close now below the 2 week low at 12442.50 would be a minor sell signal for the start of next week.


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