Yesterday's trade worked out well with the dip to the pivot at 6810 and then the bounce. However, the bounce was a bit weak - i was hoping to 6854, but it stalled at 6830, around the the coral line on the 30 minute chart.
The situation in Thailand escalated a bit yesterday with martial law leading to curfews as there was yet another coup. The situation in Ukraine continues with 16 killed at a road block yesterday.That said, i think if the 6810 level continues to hold then we should see a bit of bullishness today.
FTSE Outlook
Looking at the 30 minute chart on the FTSE 100, we are just starting to get the EMA cross over and if yesterdays low at 6810 holds (good news coming for anyone still holding that from yesterday) then I think we will see some more upside today. A test of the top of the 10 day Bianca channel at 6865 would be ideal. Today's pivot level is 6825 so bulls will need to break above that asap, otherwise a slip below 6810 will lead to the next support at 6779 which is the bottom of the 10 day Bianca channel.
Movement above the pivot at 6825 should lead to 6846 initially, then 6858/6865 area providing stronger resistance. There is an outside chance of resistance at 6875 being hit. As I mentioned support is 6810 then 6782. I am therefore thinking another long at this same level but with a fairly tight stop as if it breaks it will drop that 30 points, though 6782 might be worth small risky long as well, though I haven't put that on the trade plan.
Daily Raff Channels
Bianca Trends
Gold
Gold has just been treading water. Support is 1293 today, a break of which should lead to 1289 and that looks like a good bounce point. Its still within that daily channel on the PRT lines, the bottom of which is 1284 should those 2 supports mentioned break. Bulls still need to break 1305 to push higher, with 1330 remaining the upside potential.
S&P
We have the top of both the Raff channels at 1903ish for the S&P 500 so the bulls might well encounter some resistance at that level if it gets there soon. Todays pivot is 1891 so I expect that may act as initial support, though 1885 is stronger support.
If that breaks then 1877 is the last line of defence for the bulls and a break of that will turn things pretty bearish. On the bull side, assuming the pivot holds today, then the bulls will be targeting 1897 then 1902 (top of the 10 day Raff). I am cautiously bullish for the moment.
DAX
The top of the 10 day Raff channel on the DAX is not too far above the current level, being 9785. If the bulls can break 9735 today then that looks a viable target for the longs, but also a probable shorting area. R3 is 9775 as well so there are a couple of resistance levels in that area.
The daily pivot for the DAX today is 9715 so if that holds as initial support then we could reach those upper targets - 9765/75. If it breaks then the next support is 9638, then a much lower 9592. The EMAs on the 30 minute chart are cautiously bullish - will have to see if the 9715 pivot holds initially.