European markets play catch-up
The DAX 30 and Euro Stoxx 50 have both broken higher, but the FTSE 100 is being held back by the stronger sterling.
The DAX finally found direction and broke above 11540/545, hitting our targets of 11560/570 and 11590/600. DAX bulls are back in control as we beat 11650/660 and look for the next target of 11690/99. On a break above 11700 look for 11770/780 before strong resistance at 11835/845.
The first support at 11570/560 could hold the downside but long positions need stops below 11540. I suggest going long at 11490/480, with stops below 11450.
Euro Stoxx beat key resistance, the 200-day and 200-week moving average, at 3290/94 and 13-month trendline resistance at 3316/20. The outlook is positive if we hold above 3316/20, targeting 3350/55 and 3365. Above here look for 3386/89.
Failure to hold above 3310 risks a slide to a buying opportunity at 3293/90, with stops below 3285. Try long positions again at 3271/69 with stops below 3260.
The FTSE overran strong support at 7050/40 to bounce from 7027 but recovered quickly. If you managed to hold on to longs there was a nice profit on the recovery to resistance at 7115/20 and we topped exactly here.
We should expect stronger resistance at 7150/55 but a move above here targets 7185/95, before the recovery high at 7210/20. Above 7230 we test strong resistance at 7258/62.
Failure to beat resistance at 7115/20 would target minor support at 7100/7090. On further losses look for strong support at 7045/7040. A break below 7030 targets 7015/10. Below 7000 look for an excellent buying opportunity at 6960/50.
Technical Analyst & Trader
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