european indices

Dax 40 JUNE finally reaches the target & strong resistance at 14750/850. Shorts need stops above 14950. We just held this level yesterday before a dip to 14780 this morning. FTSE 100 JUNE made another push higher but again there was a pullback in to the close. We have a series of candles on the daily chart with long upper wicks, indicating that there is strong selling pressure at the end of the day. This can be quite a negative signal, but of course does not tell us when the market will turn lower. Update daily by 06:00 GMT Today's Analysis. Dax finally tests strong resistance at 14750/850. Shorts need stops above 14950. A close above here tonight is a (surprising) buy signal targeting 15200/220, perhaps as far as 15400. Shorts at 14750/850 target 14600 & minor support at 14550. We should at least pause here on the downside. If we continue lower look for strong support at 14350/300 for some profit taking. FTSE higher again to the next target of 7510/30 with a high for the day just 11 ticks above. It is possible that we continue to crawl higher & ultimately reach the February high at 7610/30. However I feel the index is running out of steam. First support at 7470/60, with better support at 7430/20. A break lower meets strong support at 7360/40. A bounce from here looks likely, but longs need stops below 7320. To subscribe to this report please visit daytradeideas.co.uk or email jason@daytradeideas.co.uk No representation or warranty is made as to the accuracy or completeness of this information and opinions expressed may be subject to change without notice. Estimates and projections set forth herein are based on assumptions that may not be correct or otherwise realised. All reports and information are designed for information purposes only and neither the information contained herein nor any opinion expressed is deemed to constitute an offer or invitation to make an offer, to buy or sell any security or any option, futures or other related derivatives.

In this Technical Update: DAX / GER40, AEX25 / NETH25, BEL20 / BELG20, CAC40 / FRA40 and SMI20 / SWISS20 DAX is range bound between 16,060 and 15,482. Break out needed for direction. Negative sentiment on RSI is indicating break is to be to the down side, and with the 55 and 100 Moving Average slightly declining the underlying trend sentiment is bearish. If closing below key support at around 15,482 there is downside risk to around 15K.Breaking bullish can be a struggle with the two Moving Average acting as a ceiling. It could be a struggle for DAX to penetrate. But if it does a move to July peak around 16,500 is likely       AEX25/NETH25 is bouncing from key strong support at around 730. However, the trend is down and there is no RSI divergence supporting the view of lower AEX levels. If AEX is closing below 730 a swift sell-off down to around 716-710 support is likely.For AEX to demolish the bearish trend a close above 755 is needed.However, with the 55 Moving Average on the verge of breaking below the 100 while they are bot declining thus forming a Death Cross upside potential is limited. That is not bullish for AEX     BEL20/BELG20 is side stepping failing to close above key resistance at around 3,696.RSI sentiment is negative indicating BEL20 is likely to trade lower in coming days and weeks.A close below 3,610 could ignite a sell off down to around 3,600-3,550.A close above 3,696 is needed for BEL20 to reverse to uptrend         CAC40/FRA40 Index has been range bound since April with a bearish undertone. The 200 Moving Average is providing support  but upside potential seems limited with the Index moving below declining 55 and 100 Moving Averages. A re-test of key strong support at around 7,082 is in the cards.If CAC40 is closing below 7,082 there is no strong support until around 6,900       SMI20/SWISS20 is forming symmetrical triangle pattern. Break out is needed for direction.Break out direction is likely to be to the downside as indicated by the negative RSI sentiment and all Moving Averages decliningIf that is the scenario that will play out SMI has downside potential to around 10,515 before finding support.Minor support at around 10,750.If Bullish break out there is strong overhead resistance with the declining Moving Averages above the Index.A close above 11,173 is needed for bullish trend