FTSE100

Extension of last Friday’s fall cracked pivot at 7104 (daily Kijun-sen).

Strong weekly bearish close that formed Bearish Engulfing pattern, weighs on market, as strong reversal signal has been generated.

Today’s close below broken 7129 support (Fibo 38.2% of 6867/7291 ascend) would give another negative signal for extension towards targets at 7029 (Fibo 61.8%) and psychological 7000 support.

Look for corrective upticks towards south-turned daily Tenkan sen (currently at 7178).

Res: 7111; 7158; 7178; 7205
Sup: 7066; 7029; 7000; 6967

DAX

Dax remains directionless for the third week, trading within 11423/11691 range.

Near-term studies are neutral, while dailies are still bullishly aligned (daily Tenkan-sen/Kijun-sen).

However, risk of pullback exists, following repeated upside rejections and bearish momentum that is building up.

Initial bearish signals will be generated on violation of daily Kijun-sen (11520) and higher base/range floor (11400) that could trigger bearish acceleration towards next target and pivotal support at 11197 (Fibo 38.2% of 10399/11691 upleg).

Meantime, extended sideways mode could be expected while daily Kijun-sen (11520) is holding.

Only sustained break above congestion top at 11691 would signal fresh bullish acceleration.

Res: 11601; 11643; 11691; 11800
Sup: 11557; 11520; 11423; 11400

, Market Analysis