- A significant selloff over the past 24 hours in riskier assets with safe haven assets benefiting.
- This was driven by technical chart breakouts amid growing fears regarding the spread of the coronavirus.
- Stock indices were under negative pressures, in the US, Asia and Europe, BUT intraday rebounds Thursday/ Friday leave a recovery threat into today.
- Here we focus on the future on two European benchmark averages, the German DAX and the pan-European EURO STOXX 50.
DAX Future day trade outlook: Looking for a rebound
A Thursday selloff through 13710.5/706 and to probe just below 13651/645 (t 13638.5), but whilst above this lower new support level we hang onto a rebound bias from this week’s prior dips and rebound to hit a new record level at 13824, to keep the threat higher into Friday.
- We see an upside bias for 13713.5 and 13778.5; a break above aims for 13824 and 13833.
- But below 13638.5 aims for the 13572 and maybe targets the bull gap at 13525.5-522.5.
DAX Future intermediate-term outlook
The early February surge above key 13373.5 and the critical bear gap at 13434.5-473 signalled an intermediate-term shift to bullish.
Upside risks: We see a bull trend and risk for 14000.
What changes this? Below 13476.5 sets a neutral range theme and through 13219 a bear trend.
4 Hour DAX Future Chart
EURO STOXX 50 Future day trade outlook: Rebound bias after setback
A notable selloff on Thursday through various supports, but holding just above 3811, at 3815, and whilst below this new support area (3815/11) we hang onto a positive bias from Wednesday’s dip and a rebound to a new cycle high (at 3868), to just keep the threat higher into Friday.
- We see an upside bias for 3868; a break above aims for a key 3876 target and maybe 3888.
- But below 3834 targets 3820 maybe 3811.
EURO STOXX 50 Future intermediate-term outlook
The early February surge above 3787 signalled an intermediate-term shift to bullish.
Upside risks: We see a bull trend and risk for 3876, 3933 and 4000.
What changes this? Below 3771 sets a neutral range theme and through 3705 a bear trend.
4 Hour EURO STOXX 50 Future Chart