Wednesday, 16 May 2012

European indices near support soon.....

 With S&P within the levels of our target area of 1340-1310, and the possibility of a good upward bounce a good possibility, european indices are closing on their supports.

 DAX now at 6300, has support (lower pitchfork) at 6250-6200. 6440 is short term resistance. 6500 is next resistance that if broken upwards the trend changes to up.
 CAC is at the same positionwith DAX. Support lies at 3000 level. Low up to now was in that area. 3100 level should be broken upwards to stop the lower lows and lower highs.

Eurostoxx with support at 2100 and a low near 2140 today is bouncing slightly higher. Again a lower pitchfork support lies near these levels which could be an important bottom.

Initial bounces in european indices I believe will be followed by new lows. Then I think markets will be ready for a new bigger bounce, that will clear any doubt regarding the impulsiveness of the declining waves among most markets. Reactions are being sold but I give high possibilities that the next reaction will hit bearish stops. Be carefull if you entered short positions recently.

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