Technical forecast for Eurostoxx

stoxxx

Euro Stoxx Sep13 pushed higher for a retest of 2659/60 & held below 2669 for a second selling opportunity. We have a clear head & shoulders topping pattern forming, as long as we hold this resistance area. This has bearish implications & we could test the neckline in the coming weeks at 2490/85. A break below here in the coming months confirms a measured target of 2128.

Today we are overbought short term so a test of 2625/22 is likely. Below here decent support at 2596/91 could hold the downside today but below here look for 2575/73 & a buying opportunity.

Resistance at 2659/63 could hold the topside. Only a sustained break above 2670 sees 2685/87 & possibly a move towards very strong resistance at 2709/12 for a selling opportunity.

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