Will Dax and FTSE 100 break all-time highs?
Premium|Take advantage of 60% OFF on your first month.
Grab this special offer, it's 7 months for FREE deal! And access ALL our articles and analysis.
You have reached your limit of 5 free articles for this month.
BLACK FRIDAY SALE! 60% OFF!
Grab this special offer, it's 7 months for FREE deal! And access ALL our articles and analysis.
CLAIM OFFERDax 40 June sees some profit taking in severely overbought conditions. Still no sell signal but obviously it would not be a surprise to see a small correction after such a strong bull run.
WE GOT CLOSE ENOUGH TO THE ALL TIME HIGH THIS WEEK FOR THIS TO COUNT AS A DOUBLE TOP IN MY OPINION.
FTSE 100 June trades sideways for 4 days as we become severely overbought on the daily chart. The series of 4 Dojis clearly shows the market in balance between buyers & sellers & this pattern can often lead to a correction in such severely overbought conditions - however we do not yet have a clear sell signal.
Daily analysis
Dax June we are in a bull trend so buying at support remains the favoured strategy although I am watching carefully for a sell signal as we approach the all time high. A double top would be an important longer term sell signal. We should have support at 15900/850.
A LOW FOR THE DAY EXACTLY HERE YESTERDAY.
A break below 15850 however risks a slide to 15720/700, perhaps as far as 15650/630. Just be aware that a weekly close below the 200 hour MA at 15880 would be the first minor negative signal we have seen for a month.
A break above minor resistance at 16070/090 retests the all time high at 16275/295.
FTSE June break above 7865 hit my next target of 7910/20 with a high for the week exactly here. Just be aware that we are severely overbought after an incredible 500 point gain in just 4 weeks.
Above 7920 this week look for 7955/65.
First downside target & support at 7855/45. A low for the day is certainly possible. Longs need stops below 7830. A break lower however targets 7810/00, perhaps as far as strong support at 7755/35.
Dax 40 June sees some profit taking in severely overbought conditions. Still no sell signal but obviously it would not be a surprise to see a small correction after such a strong bull run.
WE GOT CLOSE ENOUGH TO THE ALL TIME HIGH THIS WEEK FOR THIS TO COUNT AS A DOUBLE TOP IN MY OPINION.
FTSE 100 June trades sideways for 4 days as we become severely overbought on the daily chart. The series of 4 Dojis clearly shows the market in balance between buyers & sellers & this pattern can often lead to a correction in such severely overbought conditions - however we do not yet have a clear sell signal.
Daily analysis
Dax June we are in a bull trend so buying at support remains the favoured strategy although I am watching carefully for a sell signal as we approach the all time high. A double top would be an important longer term sell signal. We should have support at 15900/850.
A LOW FOR THE DAY EXACTLY HERE YESTERDAY.
A break below 15850 however risks a slide to 15720/700, perhaps as far as 15650/630. Just be aware that a weekly close below the 200 hour MA at 15880 would be the first minor negative signal we have seen for a month.
A break above minor resistance at 16070/090 retests the all time high at 16275/295.
FTSE June break above 7865 hit my next target of 7910/20 with a high for the week exactly here. Just be aware that we are severely overbought after an incredible 500 point gain in just 4 weeks.
Above 7920 this week look for 7955/65.
First downside target & support at 7855/45. A low for the day is certainly possible. Longs need stops below 7830. A break lower however targets 7810/00, perhaps as far as strong support at 7755/35.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.