Equity markets broke above key short-term resistance levels yesterday and are now heading towards long-term targets, says Andy Dodd, Head of Technical Research at Louis Capital Markets.
Dodd has observed bullish signals on the following equity indices:
STOXX Europe 600 (SXXP): Break of short-term resistance accompanied by bullish candlestick pattern has formed a continuation pattern which suggests more upside in all timeframes. Dodd’s medium-term target is 400.73
EURO STOXX Banks (SX7E): Yesterday’s close above key resistance at 122.28 is potentially bullish but Dodd would like to see another close above that level to confirm the break. He advises against shorts from here and says the next key level is 140.55.
DOW 30: Today’s gap higher, accompanied by a bullish candle, has left a bullish Flag Continuation Pattern on the daily chart. Dodd says the measured target for this pattern is 22,033; “Short this at your peril!”, he concludes.
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