(Makor) Technical View European Indices - Euro Stoxx 50, Cac40, Dax30 & UKX - structure mixed



 

                Euro Stoxx 50 Index

 

·         The Index is trading in a rising channel with channel support standing at 3,532

·         Furthermore, the May15 low was 3,484 which is also the 38.2% Fibonacci Retracement level of the 2,921-3,836 rally

·         While above 3,532 the trend remains clearly to the upside but a move below 3,484 (daily closing basis) would be negative and shift momentum lower towards the 200dma @ 3,350

·         A move above 3,666-72 (recent highs and 55dma) would be bullish and argue for a move higher towards the cycle high at 3,836

 

Strategy: Buy at mkt price on the open, target 3,836 with a stop at 3,480

 

Daily chart

 

                Cac40 Index

 

·         The Index shares a similar structure as with the Euro Stoxx 50 Index

·         The Index is trading within a rising channel and above the 23.6% Fibonacci Retracement at 4,963

·         A move below 4,963 and then below the cycle low at 4,874 would be negative and argue for a move lower - the most reasonable target on a break lower would be the 200dma at 4,594

·         On the upside, watch yesterday high and the 55dma at 5,088-95, a sustain move above this level would be bullish and argue for a move higher towards the cycle high at 5,283  

 

Strategy: Short 0.5 unit from 4,996, target 4,765 with a stop on a close above 5,051

 

Daily chart

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                Dax30 Index

 

·         The Index is trading in a rising channel, the channel support is around current levels and while this holds a move higher is likely

·         A move below 11,300-400 would be be slightly bearish and argue for a re-test of the May15 low at  11,167

·         A sustain move below 11,167 would be negative and argue for a move towards the 200dma at 10,418

·         On the upside, will need to see a sustain move above 11,802-11,920 to argue for a move higher towards the cycle high at 12,390

 

Strategy: Short 0.5 unit from 11,841, target 10,420 with a stop on a close above 11,920

 

Daily chart

 

 

                UKX Index

 

·         The Index is unchanged and remians vorlable to the downside while below 7,122

·         The bearish wedge pattern which we have been highlighting for a while targets a move to 6,384 but so far there has been no follow through

 

Strategy: Short 2 units from 6,910, target 6,500 with a stop at 7,125  

 

Daily chart

 

 

 

Technical Ideas 2015