FTSE:
FTSE held on to our 5850/40 support area and edged back to 5894/00 which held the upside on several attempts.
We are testing this level again this morning and will have to clear 5910 for bulls to be able to chase last week’s highs at 5931/41. Above 5945 then allows a challenge of 5964/73 for a selling opportunity today.
Good support remains in the 5850/40 area today. Go with a break below 5835 for a continued slide towards 5819/14 and if this does not hold the downside today as we could see sellers pressuring for 5786/80.
DAX:
Dax just held on to the 7281 support on the open and headed steadily higher throughout the day to reach the 7385 level.
A close near the upper end of the range could lead to a retest of yesterday’s highs at 7384. The market is starting to look overbought in the short term so the upside could be limited today and this may be all we can achieve once again. However go with a break above 7385 for further gains to 7411/16. Above here we have a gap to fill to 7434. Look to attempt shorts at this stage.
Below 7350 sees immediate support at 7330 and below here look for 7315. There is good support today at 7297 but failure here then targets 7274/70 and perhaps 7253/44 which is very good support today so cover shorts here and attempt longs.
Eurostoxx:
Eurostoxx held a narrow range to leave the outlook unchanged for today.
If we hold below 2755 today we should retest yesterday’s low at 2737 and below here look for support at 2728. Cover shorts with a chance we can bounce from here. However go with a break below 2725 for a move towards 2711/10 and perhaps as far as 2706. This area could hold the downside today so should be worth attempting longs here with stops needed below 2700.
Above 2767 we have a gap to fill to 2772. We will then have to regain 2780 for a chance to test resistance at 2795/99. Stops needed above 2800 for continued strength to 2813 and perhaps even 2823/26 for an excellent selling opportunity.