FTSE and DAX aiming at key resistances

Steve Miley, MSTA MarketChartist

The major European and UK equity indices have pushed up through some important resistance levels over the past week during the strong June recovery phase. Furthermore, major averages are now aiming at key level above, through which would see a more bullish intermediate-term outlook. In addition, the FAANG stocks in the US have rejected a more negative tone and also have potential for more bullish signals.

FTSE 100 bull threat to key 7474

A resilient consolidation tone on Thursday to try to build on Wednesday’s significant dip and equally notable rebound from just above our 7324 support (off of 7327), plus from the prior push above notable resistance at 7412.5 and key 7360.5, to keep risks higher Friday.

The June push above 7360.5 set an intermediate-term range we see as 7474 to 7069, BUT with risks growing for an intermediate-term bullish shift above 7474.

For Today:

We see an upside bias for 7401 and 7420; break here aims for 7440/43, even key 7474.
But below 7341/39 opens risk down to 7327/24, which we would look to try to hold.

Intermediate-term Range Breakout Parameters: Range seen as 7474 to 7069.

Upside Risks: Above 7474 sets an intermediate-term bull trend to aim for 7500 and 7625.5.
Downside Risks: Below 7069 sees an intermediate-term bear trend to target 6943 and maybe 6587.

DAX upside risks

A strong rebound rally Thursday through 12155 resistance, to reject Wednesday’s setback that held above the 12027/020 support area (at 12061.5) and resume upside forces from Tuesday’s push up above 12210.5 resistance from May after Monday’s break through the key 12123.5 level, to keep the bias higher Friday.

The June push above 12123.5 set an intermediate-term range seen as 11595 to 12318.5, BUT with risks now for a bullish shift.

For Today:

We see an upside bias for 12155, then 12224; break here quickly aims 12246 maybe next key resistance at 12318.5.
But below 12141.5 targets 12061.5 and 12027.5, maybe opening risk down to 11964.

Intermediate-term Range Breakout Parameters: Range seen as 11595 to 12318.5.

Upside Risks: Above 12318.5 sets an intermediate-term bull trend to aim for 12463.5, 12586 and 12873.
Downside Risks: Below 11595 sees an intermediate-term bear trend to target 11285, 11000/10900 and 10701.5.

Author

Steve Miley, MSTA

MarketChartist

Steve Miley, the Market Chartist brings 22 years of financial market experience with him. He spent 2009-2012 as a Director of the FX Technical Analysis Research Strategy team at Credit Suisse and was previously at Merrill Lynch for 15 years.

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