Daily Technical Analysis is provided by Jason Sen of Day Trade Ideas, who has been day trading since the late 1980’s. Jason has been a contributor of Traders Summit since the beginning. He primarily focuses on providing technical analysis of the financial markets, including stock chart patterns, Forex and Metals setups, and other useful technical analysis.
Dax 40 shot higher unexpectedly beating 15380/400 in what I still think is a bear trend to recovery 50% of the January losses. Then prices collapsed again.
EuroStoxx 50 MARCH unexpectedly rocketed to 4180/90 to recover exactly 50% of the January losses before prices collapsed again. I think prices are about to crash.
FTSE 100 MARCH likely to remain in an increased volatility state as markets develop a bear trend. I certainly did not expect us to beat very strong resistance at 7420/30 but I think outlook is negative.
Update daily at 07:00 GMT
Dax collapsed again to very minor support at 15050/030 with a low exactly here over night as I write – but longs are risky I think – further losses target 14950 before a retest of the best (probably the only) support for today at 14850/800. I would not bet on this holding. A break lower is an important sell signal targeting 14680/600, probably as far as 14350/300.
I still think gains are likely to be limited with minor resistance at 15270/280. A sell opportunity at 15380/400 (will hopefully work this time), stop above 15450.
EuroStoxx collapsed back below 4080 to target 4050/40 before a retest of probably the only support for today at 4000/3990. I would not bet on this holding – A break lower can target good support at 3900/3890 with a low for the day likely. Longs need stops below 3860. A break below here is an important medium term sell signal.
Gains are likely to be limited with resistance at 4080/90 & strong resistance at 4140/50. Stop above 4165.
FTSE becoming violently volatile! Exactly as markets do when they establish bear trends so expect this to continue. We have now wiped out the 2 days of very strong gains to test minor support at 7270/50. Further losses are likely targeting 7210/00 before a retest of this week’s low at 7190/70. Further losses are likely eventually towards best support for today at 7070/50. A break lower is likely to test the best support & buying opportunity for this week at 6950/6900. Longs need stops below 6850.
Gains are likely to be limited with resistance at 7330/40 & strong resistance at 7420/40.
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Jason Sen, Director