day trade ideas – 27/08/13

Emini S&P Sep13 continued higher as expected to hit the target of 1668/69. We predicted a high for the day to exit longs & try shorts & this trade worked perfectly as we sold off to our 1652/51 level. The short term outlook remains negative so we look for 1649/48 & possibly as far as 1646/45. A low for the day could be seen here but a break lower cannot be ruled out and could target 1640/39. Any further weakness perhaps later in the week meets the 100 day moving average & strong Fibonacci support at 1633/30 for a buying opportunity. If we can hold 1649/48 look for a bounce to 1653/54. We should struggle but a break higher could then target 1659/60 for a selling opportunity with stops above 1662 & a test of strong resistance at 1668/69.

Dax Sep13 only just held support at 8395 as we bottomed at 8387. We are edging towards July & August highs at 8462/65 as hoped despite being overbought short term. We should struggle here so we could exit longs & try shorts with stops above 8487. A break higher in this uptrend cannot be ruled out and could target 8530. Above here a test of all time highs at 8561 should follow this week. Look for immediate support at 8402 but below here we could see a low for the day at 8385. Exit shorts & try longs with stops below 8370 for the next support at 8348/38. Longs here need stops below 8324. 

Euro Stoxx Sep13 dipped to 2812/09 to exit shorts & try longs down to 2802 & this trade worked perfectly as we bottomed at 2804. The bounce took us back to the 2823/25 level for profit taking. The outlook is less certain being overbought short term & we may be a little more directionless, but above 2825 we can try again for last week’s high of 2836 before the 2839/42 target. A high for the day is expected in this area but a break higher could see a move towards this year’s high at 2859/60. Support at 2823/22 but below here risks a slide to 2805/02 to exit shorts & try longs again. We could see more sideways action in to the middle of the week while we unwind the overbought scenario. However stops on longs needed below 2798 for support at 2788/87. 

FTSE Sep13 has support down to the 100 day moving average at 6447 & if we can hold on here we could start to push higher towards resistance at 6490/98. We should struggle here with a high for the day possible. However if we continue higher look for last week’s high at 6512 before Fibonacci resistance at 6524/25 for a selling opportunity. Below 6440 risks a slide to 6415/05 for a buying opportunity with stops below 6390. 

Emini Dow Jones Sep13 only made it to 15033 before turning lower to our support at 14900/90 which is holding the downside. However the short term outlook is still quite negative so watch for continued losses towards 14850/45. Failure to bounce from here then risks a retest of last week’s low at 14810/00. If we do hold 14900/90 look for a bounce to resistance at 14945/55. A push higher from here could then target 14990/15000. Watch for a high for the day but shorts need stops above yesterday’s high at 15030 for a test of the 100 day moving average at 15070, possibly as far as Fibonacci resistance at 15100/10 for a selling opportunity.