Thursday’s Futures Outlook: FTSE, DAX, Eurostoxx

By Carol Harmer on April 16, 2009
FTSE June Contract
Ftse traded higher yesterday and had a last gasp and closed higher. Today 3977 is the obstacle that needs to be overcome. If buyers take the market above this resistance look for further strength leading to 3996.5.
Here buyers will be taking profits. Sellers will be out for blood looking to push this lower. However if the buyers decide to take them on 4012./16 will be the next stop. Buyers will profit take and sellers will be sidelined. Buyers will reemerge above 4021 for 4046/54. 3975/77 holding gives sellers a taste of success and sees them try for the bottom of the recent trading range at 3890/83. Profit taking and fresh buying will be the order of the day here, unless 3880 breaks.
Dax June Contract
Dax lunged higher on the close to 4609. However this is looking toppy again and this morning would expect this to come lower to 4516 which is the first fib retrace level. Here sellers would be looking to cover and buyers would be out defending.
Only below 4516 would buyers wobble and be looking to reverse positions and join sellers for a move lower to 4471/72. Now the other side of the coin is that Dax will hold up above 4546 and then the buyers will once more try for 4609. Sellers again will be defending this resistance. If the buyers manage to push it through here sellers will be in trouble and buyers will ramp this higher with 4640 then the targeted area. Buyers are profit taking at these higher levels and only re-instating longs above 4643 for 4695
Eurostoxx June Contract
This had a good close but has fallen shy of the 2228 previous days high. However unless this can quickly break above 2230 the charts will have a double top in place and will come lower. First retracement target for this is 2157. Buyers will be defending this level and sellers would be taking profits. If this support breaks, look for the market to come lower with 2132/31 then targeted. Once again short covering will follow and fresh buyers are in at these lows.

Now if the market makes a break above 2230 buyers will brush aside any selling pressure and trade higher for 2250 initially. Profit taking will be evident. Above 2250 sees buyers once more of the attack, leaving 2263/70 as your targeted area.