Daily Forecast - 17 November 2017
Dax December contract
EuroStoxx bottomed exactly at 3557/60 on the pull back from strong resistance at 3571/74. Further gains test stronger resistance at 3584/87 & we should really struggle here. Watch for a high for the day...but a break higher is therefore a good buy signal & puts bulls firmly back in control for 3597/99 then 3607/10.
First support at 3560/57 of course & a low for the day certainly possible. Longs need stops below 3550 for a test of strong support at 3525/20. Remember even stronger support at 3490/85 so be prepared to average in to longs down here. A good chance the bull trend will resume from here.
Ftse December Contract
FTSE must beat the 100 day moving average at 7385/80 to move back in control. Above 7400 signals further gains to 7420/25. If we continue higher look for 7450 & quite strong resistance at 7460/70 which may see a high for the bounce in to the weekend.
Longs need stops below 7330. An unexpected break below 7320 however is a sell signal initially targeting 7285/80.
S&P December Contract
Emini S&P rockets to 2589.50, just below the 2592/2594.50 all time high. Above 2595/97 targets 2603.
Failure to beat the 2592/2594.50 all time high targets 2580 before support at 2576/74 which could hold the downside. Longs need stops below 2569. A break lower targets 2565/64 but look for an excellent buying opportunity at 2555/53. Stop below 2548. An unexpected break lower however targets strong trend line support at 2542/40 & a good chance of a bounce from here, perhaps a low for the correction (would be about 2%).
Dax December Contract
Dax hit our buying opportunity at 12900/890 as predicted with longs held above 12840. A bullish candle followed by a break away gap helps support my idea that the correction is over. We beat 13005/015 to target strong resistance at 13120/140 but not quite there yet (although we were not expected to beat this yesterday). We should struggle here today but shorts are now too risky with a greater chance of a break higher to 13180/190 & 13235/245. Expect strong resistance at 13260/270. Shorts need stops above 13310.
First support at 13020/13000 could hold the downside but below here risks a slide to our buying opportunity at 12900/890. An unexpected break below 12840 however targets important support at 12740/720 for a buying opportunity with stops below 12670.
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