Daily Forecast - 27 April 2016
Eurostoxx June contract
EuroStoxx held first support at 3049/45 but below here the 100dma & 200wma at 3030/20 is the most important support of the week. Longs need stops below 3005. A break below 3005 today targets 2995/92 then support at 2973/71.
Holding above 3045/49 means we could retest important longer term Fibonacci resistance at 3090. We also meet 3 year trend line resistance at 3100/05 this week so this 15 tick area is the main challenge for bulls. We are severely overbought so this may prove unbeatable again this week. However a break above 3110 targets March highs & December lows at 3130/33.
Dax June contract
Dax holding below 10360 re-targets the 100wma support at 10330/320. The last line of defence for bulls is the 200dma at 10280/10270. (A CLOSE BELOW HERE IS MORE NEGATIVE IN TO THE END OF THE WEEK). A sustained break below 10240 therefore is a sell signal & targets support at 10155/145. If this does not hold the downside look for 10120 then support at 10090/80.
Minor resistance at 10360/370 but above here re-targets 10430/440 & perhaps as far as 10485/495 before the January 1st high at 10523. A break above here certainly possible in the 2.5 month bull trend despite overbought conditions & targets 10565 then 10625/630. It would be a slow crawl higher but further gains target resistance at 10690/699.
Ftse June contract
FTSE breaking 6260 is more positive & targets minor resistance at 6290/95 but above 6305 allows a further recovery to minor resistance at 6320/25. If we continue higher look for 6345/48 before the last week's high at 6383/87. The 200 week moving average at 6405/10 remains the main challenge for bulls this week. In such severely overbought conditions there is a good chance we will make it no further. We require at least a daily close above to keep bulls in control. Next target is December high at 6445/49.
Holding below 6242/38 re-targets 6205/00 but important support at 6175/65 is an excellent short term buying opportunity. Longs need stops below 6145. A sustained break below 6150 is a sell signal & targets 6118/12.
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