Todays Outlook for DAX and Eurostoxx
Thursday, February 02, 2012
by Carol Harmer of Charmer Charts
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Taken from www.charmercharts.com
DAX:
Dax unexpectedly broke the previous highs of 6570/80 to reach 6636.
This opens the door to further gains now with 6714 the target. Above here we can stretch to 6750.
A pullback finds support at the Jan highs of 6579 with further support at 6565 to attempt longs. Stops needed below 6555 for 6522 and possibly a test of support at 6500/90. Attempt longs here as we expect this to hold the downside for now. Stop losses needed below 6475.
Eurostoxx:
Eurostoxx hovered below 2468 for most of the day and then finally broke higher in the afternoon.
We had hoped this level would hold the upside again. However we have managed to close above here and the 200 day moving average for the first time which should now allow us to stretch to 2502/09. There is a combination of many resistances here so unload any longs and attempt shorts up in this area once again. Stops on shorts above 2515 for 2540/44.
A pullback finds support at 2463/60 and then 2450/48. Attempt longs here adding down to 2438 with stops below 2428 as a break below here would lead to a test of very good support at 2416/12. Attempt longs here once again with stops below 2405.
Carol Harmer has over 30 years experience of analysing and trading the world’s markets and is undoubtedly one of the most respected technical analysts in the world today.
Her career started in the early eighties, trading futures on the floor at LIFFE where she quickly discovered Technical Analysis as a way to maximise profits. She was one of the first traders on LIFFE to discover and study this form of analysis and quickly became widely recognised as an expert in its use as well as highly profitable.
This soon led to a position as Senior Technical Analyst for Midland Bank.
She was later head hunted for the role of Manager of Technical Analysis for Nomura Bank and then as Head of Technical Trading at Credit Suisse. Carol is also one of the first T/A's from a bank to join the STA (The Society of Technical Analysts) in the mid 80's and has trained and worked with some of the UK’s leading technical analysts.
In 1996 Carol launched 'Charmer Charts' to train independent traders in technical analysis and became the first person to provide daily forecasts for the established traders on the LIFFE floor.
She returned to the floor, trading her own account, advising traders throughout the day and continued her appearances on Bloomberg, CNBC and Reuters financial TV where she provided her valued, expert opinion on the direction of financial markets.
