- DAX December longs at solid support at 15750/700 worked perfectly.
- Euro Stoxx 50 December we wrote: Just completed a head and shoulders reversal pattern for a sell signal initially targeting 4310/00 then 4270/60 (a low for the day here), perhaps as far as strong support at 4240/30.
- That call could not have been more accurate, with a low for the day at 4240/30. A potential profit of up to 100 ticks.
- FTSE 100 December broke minor support at 7260/40 but held 18 ticks above the buying opportunity at 7170/50
Today's Analysis
DAX longs at strong support at 15750/700 worked perfectly on the bounce with resistance at 15950/16000 for some profit-taking. Strong resistance at 16050/100. Shorts need stops above 16150. A break higher keeps bulls in control for today, targeting 16260/280. A break above 16290 should target 16350/390.
Minor support is at 15880/860. A solid support is at 15750/700. Longs need stops below 15650. A break lower meets the best support for this week at 15575/525.
EuroStoxx shorts work on the slide to strong support at 4240/30 with a low for the day here, so longs also worked perfectly on the bounce to 4300/10. This is the only resistance of the day. Shorts need stops above 4320. A break higher targets 4340/50.
Holding resistance at 4300/10 targets 4280/70 before a retest of strong support at 4240/30. Longs need stops below 4220. A break lower is a sell signal. FTSE shot higher to the 7300/10 target as I write this morning, perhaps as far as 7335/40 later today, before a retest of 7380/90.
Minor support again at 7260/40 before a buying opportunity at 7170/50 with stops below 7135. A break lower targets 7100/7090, perhaps as far as 7040/30.