Technicals
European Stocks Retrace, Preapare to Renew Bearish Momentum
Tuesday, 13 Oct 2009 4:11 EDT at 4:11 by Ilya Spivak · Leave a Comment
WEEKLY STRATEGY
FTSE 100 Pivot Table
DAX 30 Pivot Table
CAC 40 Pivot Table
FTSE 100
Long-term Technical Outlook
The FTSE has reached the 100% extension of the 3461-4521 rally (5156). Parallel channel resistance at this level reinforces this level and increases the risk of a top and reversal. 5339 would be the next level of potential resistance.
Short-Term Technical Outlook
The FTSE has retraced higher to re-test support-turned-resistance at the bottom of a rising channel that had contained prices since August. A turn lower from here sees initial support at 5084.66, the 23.6% Fibonacci retracement level.
DAX
Long-term Technical Outlook
The DAX has yet to reach its measured resistance point of 6113, which is where the 2 bull legs from the March low would be equal. Potential resistance prior to that point is 5870 (50% of decline from 8152). The mentioned 6113 is reinforced by 6168 (former support line in gray).
Short-Term Technical Outlook
The German benchmark index has pushed higher, breaking triple top resistance to pause ahead of 58185. Near-term support is seen at 57296, the 23.6% Fibonacci retracement level.
CAC 40
Long-term Technical Outlook
Similar to the DAX, the CAC 40 has yet to reach its measured resistance point of 6113, which is where the 2 bull legs from the March low would be equal. However, price is close and potential parallel channel resistance reiforces the current area as one that may provide the supply required to produce a reversal.
Short-Term Technical Outlook
The German benchmark index has pushed higher, breaking triple top resistance to pause ahead of 58185. Near-term support is seen at 57296, the 23.6% Fibonacci retracement level.
IBEX 35
Long-term Technical Outlook
The IBEX has reached the January 2008 low. Former support is now resistance. RSI divergence warns of a trend change as well. Watch the trendline and top channel line as potential end points for the rally in the event that the advance continues. 1247 (100% extension) is also a level to expect a reversal if reached.
Short-Term Technical Outlook
The German benchmark index has pushed higher, breaking triple top resistance to pause ahead of 58185. Near-term support is seen at 57296, the 23.6% Fibonacci retracement level.
S&P/MIB
Long-term Technical Outlook
The FTSE/MIB index encounters resistance from channel midline. Additional levels to watch are 24916 to 26464. The 100% extension of the 12332-20702 rally is near the top of this range.
Short-Term Technical Outlook
The FTSE/MIB has surpassed double top resistance at 23658.51. From here, prices target 24441.98, the top of a rising channel that has guided trading since early September.
