day trade ideas – 12/08/13

Emini Dow Jones Sep13 just starting to break lower as we tested support at 15345/35 & spiked to 15305 before recovering. Failure to beat 15375 today keeps the market under pressure for 15345/35 then a retest of 15305. The outlook is quite negative so a break lower cannot be ruled out and could target 15260/55. If we continue lower perhaps later in the week we could test good support at 15170/65.

Above 15380 is less negative & could reach 15410/17. We should struggle here but if we continue higher look for resistance at 15451 with a selling opportunity at 15485. Exit longs & try shorts with stops above 15525.

Emini S&P Sep13 held resistance at 1696/97 perfectly & as predicted we headed lower but held just above1681/80. Today could be significant if only in the short term, as we could be forming a small head & shoulders pattern with a neck line at 1683. A close below here today would give us a measured target of 1655, possibly 1647 in the days to follow. However along the way we meet strong support at 1670/69 with a bounce from here expected today at least.

Resistance at 1689/90 then 1696/97 for a selling opportunity with stops above 1700 for a retest of all time highs at 1704/05. This should offer a selling opportunity at this stage.

Dax Sep13 dipped to 8284/81 & bottomed exactly here then raced higher towards 8382/87 & topped just below. There is a potential short term head & shoulders forming with a neck line at 8240 so watch this level this week. A break lower would give us a measured target of 8062.

Immediate resistance at 8382/87 & we should struggle here again but shorts need stops above trend line resistance at 8410. A break higher would negate the head & shoulders pattern & target 8437/42 before August highs at 8464.

Support at 8284/81 could hold the downside but longs need stops below 8267 for 8251 then last week’s low at 8231.

Euro Stoxx Sep13 held support at 2805/02 to break higher & hit 2837. The daily chart is turning more negative but a break higher offers a selling opportunity at this year’s high at 2845/49. Use stops on shorts above 2860 for a move towards 2883/93.

A drift lower today targets 2709/06 but a break lower could reach 2793/92. Watch for a bounce from here but if we continue lower we should see a test of 2779/77.

FTSE Sep13 made a small recovery in to the end of the week as expected & if we continue higher look for a selling opportunity at 6586/95. Stops on shorts needed above 6600 for 6620/25 which should meet selling pressure.

Immediate support is 6535 but longs need stops below 6525 for a test of 6500/95 & a low for the day likely. However,  if we continue lower look for 6481/72.