Week ahead for major European indices
DAX 30 September futures collapsed in line with the US stock markets at the beginning of last week. In fact, total losses for the two weeks up to last Monday were almost 1200 points or 10%.
A good recovery up to Friday morning saw the index gain just over 400 points from the low. Take a look at the daily chart below.
First resistance at 11870/890 comes from the 38.2% Fibonacci and 200-hour moving average you see on the 60-minute chart below. A break above 1910 is a buy signal targeting 11960/980 then strong resistance at 12100/150. Short positions need stops above 12200.
First support is at 11720/700 from the lower trendline, 23.6% Fibonacci and 100-hour moving average on the 60-minute chart. Long positions need stops below the 200-day moving average at 11650 (the red line in the daily chart). A break lower is more negative targeting 11550/560, perhaps as far as 11470/460, before a re-test of the low so far at 11435. A break lower targets 11400/380, then 11320/300, while below 11280 risks a slide as far as support at 11180/170.
Euro Stoxx 50 September futures naturally moved lower over the same two-week period before a small recovery up to Thursday.
Holding above 3350 meets a selling opportunity at 3380/90. This level comes from the 38.2% Fibonacci level and red 200-hour moving average on the 60-minute chart below. Short positions need stops above 3400. A break higher targets 3412/15 and 3430/35.
Holding below 3345 meets a buying opportunity at the first support at 3325/20. This comes from the 23.6% Fibonacci level coupled with the blue 100-hour moving average in the 60-minute chart. Long positions need stops below 3310. A break lower is a short-term sell signal targeting 3200/3295 and 3280/75 before a re-test of the correction low at 3250/46.
FTSE 100 September futures collapsed 8.7% over the same period, as we can see in the daily chart.
Again we look at the shorter-term chart for trading levels for this week. Key resistance at the 38.2% Fibonacci level of 7255/60 held perfectly on Friday. Short positions need stops above 7275. A break higher is a buy signal targeting 7310/20 with strong resistance at 7330/40.
Short positions at 7255/60 re-target 7220/15 with minor support at 7200/7195. A break lower meets a buying opportunity at 7160/50, with stops below 7140. Further losses target 7100/7090.
Technical Analyst & Trader
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