FTSE 100

FTSE advanced strongly on Monday, following gap-higher opening and fresh acceleration higher that so peaked above Fibo 38.2% of the downleg from 6979 to 6627.
Price is currently riding on fourth (corrective wave of five-wave cycle from 7092 (11 Oct peak) which should ideally end at 6775 zone, before fresh leg lower, according to wave principles
However, strong bullish sentiment, regained on fresh dollar’s rally, may extend recovery from last Friday’s low at 6627.
Next good barrier lies at 6805 (falling daily Tenkan-sen), close above which is needed to maintain bullish tone for further recovery. Daily Kijun-sen line at 6860 marks the upper breakpoint and firm break here would confirm reversal and signal formation of double-top at 6640/27.

Res: 6775; 6805; 6844; 6860
Sup: 6747; 6687; 6640; 6627

DAX
Dax is holding within narrow range between 10374 and 10445, following Monday’s opening with gap of over 200 pips higher. Consolidation is attempting to stabilize above 10400 handle (Fibo 38.2% of last week’s sharp fall from 10737 to 10196), close above which is needed to generate further bullish signal.
However, today’s action after gap is shaped in long-legged Doji candle which shows indecision and requires signal for fresh direction.
Near-term studies improved on today’s bounce, but overall structure remains bearish. Daily Tenkan-sen / Kijun-sen bear-cross at 10510 maintains downside pressure, along with triple bear cross, formed on cross of daily 10SMA below 20;30 and 55SMA’s, which offers resistances between 10550 and 10610.
On the other side, Slow Stochastic is about to reverse from deep oversold conditions that suggest possible extended recovery.
Lift above 10510 would give initial bullish signal, with regain of 10600 zone, needed to confirm bullish resumption.
Otherwise, downside would remain at risk, with loss of session low at 10374 and extension below 100SMA at 10343, expected to soften near-term structure.
Res: 10269; 10336; 10356; 10464
Sup: 10374; 10343; 10290; 10254
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