FTSE first resistance at 6115/20 again today

Daily Forecast - 06 January 2016

Dax March contract

Dax is now oversold short term & the bounce has taken us to first resistance at 10340. A push through 10360 signals a retest of yesterday's high at 10400/403 & perhaps as far as resistance at 10440/450. A good chance of a high for the day but shorts need stops above 10485. A break higher targets only very minor resistance at 10520/530 but a break above here targets the 10560/10590 area. This should be a challenge but a break above 10620 could see prices fill the gap up to 10690.

Failure to beat first resistance at 10340 keeps the pressure on for 10260/250. The downside may be more limited today in oversold conditions but further losses risks a retest of of yesterday's low at 10172. This is not much support so be ready to sell a break below to target December lows at 10120. We bounced off here last time because this was important Fibonacci support & a good chance we will do so again today but longs need stops below 10070. A break lower is obviously negative & targets 10050, 10020, 9960/9950.

Eurostoxx March contract

EuroStoxx is now oversold short term so a recovery is possible but we must hold above 3170 this morning to target first resistance at 3190/95. A high for the day certainly possible but a break above 3200 targets the week's high at 3214, perhaps as far as strong resistance at 3225/30. Try shorts with stops above 3240. Be ready to buy a break above here to target 3260/63 then an excellent selling opportunity at 3285/90.

Below 3170 is less positive & targets 3150/45. Further losses retest support at December lows at 3133 & this week's low at 3127. A break below 3120 is a sell signal & targets 3110 then 3084/80. If we continue lower look for 3064/60 then 3044/42. Further losses risks a retest of October lows at 3031/26.

Ftse March contract

FTSE first resistance at 6115/20 again today should be the main challenge for bulls but shorts need stops above 6125. A break higher targets minor resistance at 6145/50, perhaps as far as a selling opportunity at 6175/80. Shorts here need stops above 6195. If we continue higher look for the next target & selling opportunity at 6221/25.

Failure to beat first resistance at 6115/20 re-targets quite good short term support at 6080/75. If we continue lower look for 6045/41 then support from 6025 down to this week's low at 6016. Any longs here need stops below minor support at 6000. Be ready to sell a break below 6000 to target 5980/79 then 2 week lows at 5948/46. A break below here could target 5919/16.