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Europe: Shaken but not stirred

By Colin Twiggs
March 4th, 2014 2:30 a.m. ET (6:30 p.m. AEDT)

These extracts from my trading diary are for educational purposes. Any advice contained therein is provided for the general information of readers and does not have regard to any particular person's investment objectives, financial situation or needs and must not be construed as advice to buy, sell, hold or otherwise deal with any securities or other investments. Accordingly, no reader should act on the basis of any information contained therein without first having consulted a suitably qualified financial advisor. Full terms and conditions can be found at Terms of Use.


The Euro has held up well despite rising tensions with Russia over the Ukraine. Reversal below $1.365 would warn of a test of primary support at $1.35. Bearish divergence on 13-week Twiggs Momentum suggests another correction. Breakout above $1.38 is less likely at present, but would signal an advance to $1.43*.

Euro

* Target calculation: 1.38 + ( 1.38 - 1.33 ) = 1.43

Dow Jones Euro Stoxx 50 retreated below 3100 and is likely to test primary support at 2920/2950. Breach of primary support would signal reversal to a down-trend.

Dow Jones Euro Stoxx 50

* Target calculation: 3150 + ( 3150 - 2950 ) = 3350

Germany's DAX is stronger, with rising 13-week Twiggs Money Flow suggesting another attempt at 10,000. But retreat below 9500 would test primary support at 9000.

DAX

DAX Volatility spiked above 20, but still reflects moderate risk.

DAX

The FTSE 100 is testing resistance at 6850. Rising troughs above zero on 13-week Twiggs Money Flow signal buying pressure. Breakout would encounter further resistance at the 1999 high of 7000, so the calculated target of 7200 may be unrealistic. Reversal below 6700 is unlikely, but would test primary support at 6400.

FTSE 100

* Target calculation: 6800 + ( 6800 - 6400 ) = 7200

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