Technical forecast for Eurostoxx

stoxx2

Euro Stoxx Sep13 made a move towards very strong resistance at 2709/12 for a selling opportunity as we topped just below at 2705. We may get a second chance at this level today & would be looking for a top now to the 3 week recovery. Use stops on shorts above 2720 for 2733/34.

If we do see an end to the rally today we have the makings of the longer term head & shoulders top we talked about earlier in the week. More on that next week.

Support at 2668 was tested & held perfectly. A break lower today sees a test of the 100 day moving average at 2660/55 with a low for the day very possible. However any longs need stops below 2646 for 2634 then very strong support at 2626/23 for a buying opportunity today.

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