Technical forecast for Eurostoxx

Euro Stoxx broke 2660 which was a surprise but we then hit our next target at 2692/96. At this stage we expected to hit sellers & advised to try shorts with a stop above 2705. This worked with a top at 2694. We have seen an incredible 8.5% gain in just 8 sessions now but could hit profit taking today. Look for support at 2666/60 to take profit on those shorts but below here sees 2650 & possibly 2643. We look for a low for the day within this band but longs need a stop below the 100 day moving average at 2638.

2692/96 is resistance again today of course but stops needed above 2705 for further gains to 2714/16 then 2725/26 & possibly as far as 2731/35. This level closes the rollover gap & should be enough of a rally for now.

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. has established itself as the leading provider of... More