Daily Forecast - 19 October 2015
Dax December contract
Dax same levels apply for today with strong resistance at 10170/190 the main challenge for bulls again today. A break above 10210 however targets 10260 & strong trend line resistance at 10290/300. This should hold a rally & could mark the high for the recovery. Try shorts with stops above 10340. Just be aware that a weekly close above 10300 is positive for next week.
Minor support at 10080/070 but below 10050 adds pressure to target 10035 & only minor support at 10010/000. A bounce from here on the first test is possible but longs here look a little risky. Be ready to sell a break below here if not already short to target 9960 then good support at 9900/9890. A good chance of a low for the day.
Gold Spot
Gold could go lower in the short term & holding below 1177 targets first support at 1170/69. Trying longs here looks a little risky however & break lower targets better support at 1166/64. Try longs here though, with stops at 1159.
Above 1178 allows a recovery to trend line resistance at 1186/87. We should struggle with any gains today but shorts need stops above 1190. A break higher sees bulls likely to remain in control but it could be a slow crawl higher in overbought conditions to 1192, 1196/97 then 1201/02. If we continue higher look for 1207/08.
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