Dax 40 shorts at first resistance at 15170/200 worked perfectly yesterday…

Dax 40 shorts at first resistance at 15170/200 worked perfectly yesterday…

& at last the index broke lower - how long have I been waiting for this move!!??

The break below 15050/15000 was a serious sell signal & exactly as predicted we collapsed quickly to 14830/800, 14680/650 & almost as far as 14350/300 with a low for the day just 33 ticks above.

EuroStoxx 50 MARCH we wrote: a break below 4060 can retest 4000/3990. A break below here targets 3900/3880.

Targets all hit with a low for the day exactly at 3900.

FTSE 100 MARCH could be building a short term head & shoulders pattern. A break below 7400 would confirm & trigger a sell signal with a 200 tick drop the measured target.

Update daily at 07:00 GMT

Today's Analysis.

Dax has very strong support at 14350/300. Longs need stops below 14250. An unexpected break lower however targets strong longer term moving average support at 14050/13950.

We could see a good recovery having held important support at 14350/300 targeting 14600/650. If we continue higher expected very strong resistance at 14800/850 today. Shorts need stops above 14900. A break higher can target strong resistance at 15100/150.

EuroStoxx a low for the day exactly at important support at 3900/3880. A break below 3860 is therefore an important medium term sell signal initially targeting 3810/00 & 3750/40.

Holding important support at 3900/3880 allows a recovery to resistance at 3990/4000. Shorts need stops above 4020. A break higher can target resistance at 4080/90.

FTSE saw a high for the day exactly at first resistance at 7510/30. The index collapsed to 7440/20 & 7350. Further losses meet strong support at 7310/00 today. Longs need stops below 7270.

First resistance at 7410/20. Very strong resistance at 7450/60. Shorts need stops above 7490.

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Jason Sen

Jason Sen

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 used technical analysis throughout his trading career and formed Daytrdeideas.co.uk which established itself as the leading provider of daily technical analysis to independent and professional traders within the investment bank community. He advises dozens of traders at up to 15 major investment banks and hedge funds on market movement throughout each trading day on The Bloomberg Professional® service. Jason Sen also provides trade ideas with entry, exit and target levels on Telegram & in daily reports to retail traders. daytradeideas.co.uk