Equities 06.12.2016

Equities 06.12.2016

DAX
The price is consolidating around 10700 handle after Monday’s strong rally that peaked at 10737 (the biggest one-day gains after 09 Nov post-US election rally).
Yesterday’s long bullish candle underpins near-term action for final push towards key 10800 resistance zone.
Initial support at 10657 stays intact for now, guarding 10600 pivot (Fibo 38.2% of yesterday’s rally / 30SMA) which is expected to hold extended dips.
Otherwise, close below 10600 would weaken near-term structure and risk stronger pullback.
Next downside triggers lay at 10570 and 10528.

Res: 10720; 10737; 10796; 10824
Sup: 10657; 10600; 10570; 10528

dax-06-12-2016

 

FTSE100
Rally on Monday was rejected at 6799 (Fibo 61.8% of 6872/6675 downleg), with subsequent pullback bringing today’s price action within narrow range under 6750 barrier.
Overall bearish structure sees risk of retesting strong support and n/t base at 6675, while the price stays capped under falling daily Tenkan-sen (currently at 6763).
Loss of 6675 handle would trigger fresh weakness and expose 6627 (04 Nov low).
Alternative scenario requires sustained break above 6697 to expose recent peaks at 6850 zone and daily cloud base at 6866.
Res: 6750; 6763; 6799; 6850
Sup: 6719; 6675; 6627; 6600
ftse-06-12, Market Analysis