Europe: DAX and Footsie test resistance

By Colin Twiggs
June 12th, 2014 3:00 a.m. EDT (5:00 p.m. AEST)

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  • Euro weakens.
  • Stocks in a strong up-trend.

The Euro is testing primary support and the rising trendline at $1.35 on the weekly chart. Bearish divergence on 13-week Twiggs Momentum, followed by a cross below zero, warns of a trend reversal. Breach of support would strengthen the signal. Recovery above $1.37, however, would suggest another test of $1.40.


Dow Jones Euro Stoxx 50 is trending strongly on the monthly chart. Recovery of 13-week Twiggs Momentum above 10% would complete another trough above zero, further strengthening the trend. Reversal below 3000 and the primary trendline is most unlikely, but would warn of a reversal.

Dow Jones Euro Stoxx 50

* Target calculation: 3200 + ( 3200 - 3000 ) = 3400

The Footsie is again testing resistance at 6850. Follow-through above 6900 would signal an advance to 7200*. Falling 13-week Twiggs Money Flow indicates short-term selling pressure, but long-term oscillations above zero reflect strong buying pressure. Reversal below 6800 is less likely, but would warn of another correction.

FTSE 100

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

The DAX is sitting at the psychological barrier of 10000. Expect retracement to test support at 9800. Respect is likely and follow-through above 10000 would signal an advance to 10500* Recovery of 13-week Twiggs Money Flow above the declining trendline suggests that selling pressure is easing. Reversal below 9750/9800 is unlikely, but would warn of a correction to the rising trendline.


* Target calculation: 9750 + ( 9750 - 9000 ) = 10500

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~ Jesse Livermore