Daily Forecast - 05 November 2015
Eurostoxx December contract
EuroStoxx 61.8% resistance from the April/August move lower & 200 day moving average at 3457/65 is the main challenge for bulls of course this week. Watch for a high for the day. However on a break higher we could target the next big challenge at 10 month trend line resistance at 3510/15. Shorts need stops above 3525.
Minor support at 3420/15 today but below here risks a slide as far as better support at 3399/95. Further losses however could re-target 2 week lows at 3380/75. This ties in with 100 day moving average support so is obviously important having held the downside so far. A break lower therefore is a sell signal targeting Fibonacci support at 3353/50.
Ftse December contract
FTSE first resistance at 6375/80 but above here could target 6410 then 6432/35 once again. If we continue higher this week look for a retest of October highs at 6467/68. Further gains then meet strong trend line resistance at 6495/6505.
First support at 6348/45 but below here better support at 6320/17 could hold the downside. Longs need stops below 6305 to retarget minor support at 6290/85. If we continue lower look for an excellent short term buying opportunity at 6230/25.
Dax December contract
Dax appears to have finally run in to profit taking in severely overbought conditions. We have important support in the 10780/750 area today. Holding above here keeps bulls in control for a bounce to 10860/880. If we continue higher look for 10990/11000 which looks likely to hold a rally again today. Just be aware that a break higher meets strong resistance at 11075.
Longs at 10780/750 need stops below 10710. A break lower sees 10780/750 then work as strong resistance triggering a further sell off to 10685 & perhaps as far as strong support at 10610/600. Try longs with stops below 10560.
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