Friday’s Futures Outlook: FTSE, DAX, Eurostoxx

FTSE June Contract

Sellers tried yesterday (Thursday) to push this lower but only managed to reach 3914 before buyers piled in and wiped them out. Every level on the way higher did hold initially, but the steamrolling buyers did not pause for long before pushing this through to 4057.

Now this has eased slightly on the close to 4037, but buyers still taste glory and will do their best to end the week in control. Your level this morning to watch is 4054/57. Buyers breaking through this barriers leaves sellers standing and will whip up further buyers who will be searching for 4073/77 first target. Small profit taking will be evident but buyers will still be champing at the bit and once 4080 breaks buyers will once more enter the fray taking this to 4098/4100 then 4119. Now at this point expect buyers to take a break to regroup at lower levels.

If the market fails to break 4057 look for the first short term fib level of 4000 to entice. This coincides with your pivot point, thus offering another source of support. Buyers will be waiting in the wings to here and only wobble if below 3995.

Dax June Contract

Dax came lower but held 4538.5 and buyers then gleefully took this higher to 4668 and the close has been at the higher end of the range. This morning the market should open higher, but there is the resistance at 4668 once more.

If buyers cannot make a break above here sellers will seize the opportunity to take a little bit out of the market and push it lower to the first short term fib level at 4559. Buyers will be waiting here however and it is only below here that the market would look slightly more weaker for 4501.

Now if there are no pullbacks and buyers manage to break through 4668 look for this to come higher with 4695 to 4703 then the targeted area. This is excellent resistance and sellers will not give in without a fight at these levels. Buyers should give way on this issue and only rear their heads if and only if there is a break above 4675.

Eurostoxx June Contract

Good rallies yesterday with buyers taking this higher for 2258. Slight easing on the close, but this still retains underlying strength and should trade higher. There is resistance at 2258 and this morning if buyers cannot make a break above here, look for the sellers to sneak out of the woodwork and try to force the market lower with 2230/26 looking to be the first short term target. Short covering is expected here. If sellers get a taste for success they will try and break through 2220 for the first Fib short term level of 2206. Here buyers will be waiting and sellers will not get away with it any more. That is the downside scenario.

However buyers still have the winning streak and if today they can push the market through 2258 2278/81 would be the first target. Profit taking will be evident to here. Buyers will only reinstate however above 2288. Only then would the upside potential of 2295/96 be realised.

Subscribe by RSS Subscribe by Email