Dax 40 June opened greater after the vacation weekend…it appeared like bulls remained in full management. Nonetheless costs collapsed in a short time & a bearish engulfing candle was posted on the 1 hour chart.
This was our first warning.
Then a bearish engulfing candle was posted on the 4 hour chart.
This was our second warning.
FTSE 100 June does nonetheless seems to have a rounding prime, with a brand new low for the week on Friday and one other new low yesterday. Word yesterday’s bearish engulfing candle on the every day chart, which provides to the extra adverse outlook.
Day by day evaluation
Dax June virtually posted a bearish engulfing candle on the every day chart however we didn’t break the low of Friday’s session. Nonetheless we have been solely 11 ticks away & we did shut on the low of the day so it is adequate to me to behave as a promote sign. Word that if we shut this week under final week’s low of 15800 now we have a bearish engulfing candle on the weekly chart too. So a break under 15770 ought to be a promote sign for in the present day. A break under the early March excessive at 15720 ought to provides strain to the draw back & a break under the February excessive at 15705 ought to do the identical so we will take a break under 15700 to be the following promote sign.
Subsequent goal is 15550.
If we maintain on to 15800 we stay in a broadening prime sample & we’ll anticipate the breakout to the draw back. I have no idea how far a restoration may go in the present day, however keep in mind that we do have a big bull entice, with anybody who has entered a protracted place over the previous 2 or 3 weeks waking as much as a dropping place this morning. They might be eager to exit on a bounce in the present day so I feel positive factors are more likely to be restricted. Bulls want above yesterday’s excessive at 16126 to be rescued.
FTSE June rounding prime seems to be enjoying out because the FTSE traits decrease. Though we initially traded above Friday’s excessive, the index shortly collapsed to put up a bearish engulfing candle on the every day chart.
Once more, positive factors are more likely to be restricted with minor resistance at 7820/30 & robust resistance at 7860/70 Shorts want stops above 7900.
There may be help at 7770/50 & we did bounce from right here yesterday. We may achieve this once more in the present day however ultimately I feel we’ll break decrease (possibly not in the present day, I can’t be certain). This ought to be a promote sign focusing on 7670/50.
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