Technical forecast for Energy Futures

FTSE hit the upper target of 6340 & topped at 6356. We have formed a downward sloping channel over the past 2 weeks & this is the upper limit. We also have a potential head & shoulders top to monitor. We look for profit taking today down to 6324 then 6304. We should bounce from here but a break targets 6288 then better support at 6272.

6356 could hold again if tested but a break higher would target 6373. Good chance of a high here but if we push on then 6387 & a retest of 6397 is likely. We should fail here to form a bearish double top.

Dax headed higher as expected to the 7725 resistance & topped out exactly here. If we push on today look for 7758 & a possible selling opportunity but if this does not hold look for 7804 as the next target.

Below 7690/80 look for 7652. Below here we can see 7625/50 then 7587 & lows for the week at 7564

EuroStoxx bounced as expected to 2628 which was predicted to be the limit & the high was 2831. We could see a drift lower today to 2612 then better support at 2603. A break below 2690 then targets 2562/56 lows.

2628/32 remains tricky resistance but if reach as far as 2645 this should be a good chance to enter or add to shorts. Stops above 2657.

S&P headed higher but smashed through 1508 which was unexpected. We have reached 1519 & a 1 week trend line. If this continues to hold as we look very overbought in the short term, look for 1510 & then 1505 below. A break of 1500 then targets good support at 1496 & a good chance of a low for the day. However a break of 1489 could then signal a retest of 1482 lows. A break of 1480 targets 1475/73 & if we continue lower through 1470 look for 1460/57.

A push through 1520 should see us challenge Monday’s high at 1524/25. Good chance we top out here again but if we break higher we could expect a retest of 1529/30 highs where we look for a double top pattern. However a close above here negates the recent bearish signals & puts bulls firmly back in control.

Jason Sen began his career in the options pits on the trading floor of LIFFE in 1987 at the age of 19, making markets on his own account. In 2001 when the trading floor closed he successfully made the transition to day trading on computer screens. Jason always had an interest in technical analysis throughout his trading career but began to study this area in depth from 2006. www.daytradeideas.com has established itself as the leading provider of... More