Daily Forecast - 17 July 2014
Eurostoxx September contract
Euro Stoxx held on to support at 3163/68 & shot higher to our selling opportunity at 3207/11 to top exactly here. Getting overbought short term now in the 4 week bear trend so this area could hold the topside again today but shorts need stops above 3218. A break higher could then target Fibonacci resistance at 3230 with a good chance of a high for the day. Try shorts with stops above 3240.
Failure to beat 3207/11 again today adds pressure for 3192/90 then 3177. If we continue lower look for support at 3168/65, which could hold the downside. However a break lower is much more negative & could retest the low this week at 3145/41. A break lower targets mid May lows & 1 year Fibonacci support at 3130/21 which is incredibly important support again. A break below 3120 is a major problem for bulls, should trigger the next leg lower & further heavy selling pressure targets the 200 day moving average & May lows at 3099/90. Obviously this is crucial & any longs need stops below 3080.
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