Footsie hesitates as Sterling tests support

Brexit uncertainty is likely to continue for an extended period, with Sterling testing primary support at 1.13 against the Euro. Breach would signal a test of the 2016 low at 1.10.

GBPEUR

The FTSE 100 retraced to test support at 7400, with bearish divergence on Twiggs Money Flow indicating medium-term selling pressure. Respect would confirm the target of 7700*. But breach of the rising trendline is as likely, and would warn of a test of primary support at 7100.

FTSE 100

* Target: 7400 + ( 7400 – 7100 ) = 7700

Footsie stalls, Sterling weakens

Political uncertainty, with a hung parliament, increased downward pressure on Sterling which is testing primary support at 1.13/1.14 against the Euro. Breach would signal a test of the 2016 low at 1.10.

GBPEUR

The FTSE 100 stalled at 7600, with bearish divergence on Twiggs Money Flow indicating medium-term selling pressure. Retracement that respects support at 7400 would re-affirm the target of 7700*. But breach of the rising trendline is as likely, which would warn of a test of primary support at 7100.

FTSE 100

* Target: 7400 + ( 7400 – 7100 ) = 7700

Footsie stalls as Pound weakens

Sterling continues to test primary support at 1.140 Euro. Breach would signal a decline to the 2016 low at 1.100.

GBPEUR

The FTSE 100 advance stalled, signaled by a doji on the weekly chart, with bearish divergence on Twiggs Money Flow indicating medium-term selling pressure. Retracement that respects support at 7400 would re-affirm the target of 7700*.

FTSE 100

* Target: 7400 + ( 7400 – 7100 ) = 7700

Footsie powers on

Sterling weakened against the Euro, with GBPEUR headed for a test of primary support at 1.135/1.140. Breach would signal a fresh decline to test the 2016 low at 1.100.

GBPEUR

The FTSE 100 shrugged this off, advancing towards its medium-term target of 7700*. Rising Twiggs Money Flow indicates long-term buying pressure.

FTSE 100

* Target: 7400 + ( 7400 – 7100 ) = 7700

Footsie retraces

The FTSE 100 is retracing to test the new support level at 7400. Respect is likely and would indicate an advance to 7700*. Declining Twiggs Money Flow indicates medium-term selling pressure but the long-term signal remains bullish.

FTSE 100

* Target: 7400 + ( 7400 – 7100 ) = 7700

Footsie bounce

The FTSE 100 rallied off support at 7100. Breakout above 7400 would signal a fresh advance. Declining Twiggs Money Flow indicates medium-term selling pressure; the long-term signal, however, remains bullish.

FTSE 100

Footsie stalls as Pound strengthens

Pound Sterling is strengthening against the US Dollar as well as the Euro (mentioned last week). Recovery of the Pound above 1.27 (GBPUSD) completes a triple bottom, suggesting that a base is forming. Crossover of 13-week Momentum above zero indicates a primary up-trend.

Pound Sterling (GBPUSD)

Breakout above 1.20 against the Euro (GBPEUR) would strengthen the signal.

The FTSE 100 continues to test support at 7100. Declining Twiggs Money Flow indicates medium-term selling pressure. A rising Pound is likely to result in a Footsie test of primary support at 6700.

FTSE 100

Cable drags Footsie lower

Pound Sterling strengthened this week on news of an early election. Despite Brexit fears the Cable, as it is commonly referred to by traders, has been strengthening for several months. Crossover of 13-week Momentum above zero suggests a primary up-trend. Breakout above 1.20 against the Euro would confirm the signal.

Pound Sterling (GBPEUR)

The FTSE 100 retreated from resistance at 7400. Rising troughs on Twiggs Money Flow indicate long-term buying pressure but reversal below 7100 would warn of a correction.

FTSE 100

* Target: 7400 + ( 7400 – 6700 ) = 8100

European advance continues

Dow Jones Euro Stoxx 50, reflecting the top 50 stocks in the Euro monetary area, is consolidating in a narrow band below 3500. Rising Twiggs Money Flow indicates strong buying pressure. Breakout above 3500 is likely and would signal another advance.

Dow Jones Euro Stoxx 50

The FTSE 100 is consolidating in a narrow range below 7400. Rising troughs on Twiggs Money Flow indicate strong buying pressure. Breakout above 7400 is likely and would offer a long-term target of 8000*.

FTSE 100

* Target: 7400 + ( 7400 – 6700 ) = 8100

Europe advances

Germany’s DAX is testing the band of resistance between 12000 and its April 2015 high of 12400. Rising troughs on Twiggs Money Flow indicate strong buying pressure. Breakout is expected but we are likely to experience consolidation below 12400, or a moderate correction, ahead of this.

DAX

The FTSE 100 followed through above resistance at 7350, signaling another advance. Rising troughs on Twiggs Money Flow indicate strong buying pressure. Target for the advance is 7600*.

FTSE 100

* Target: 7350 + ( 7350 – 7100 ) = 7600

Europe advances

Dow Jones Euro Stoxx 50 represents the 50 largest blue chip stocks (Volkswagen, Bayer, Allianz, L’Oreal, Phillips, Unilever, etc.) in the Eurozone, in terms of free-float market capitalization. Breakout above resistance at 3330 signals an advance to 3500*.

Dow Jones Euro Stoxx 50

* Target: 3300 + ( 3300 – 3100 ) = 3500

The FTSE 100 is testing support at its former resistance level of 7350. Rising troughs on Twiggs Money Flow indicate strong buying pressure. Respect of support is likely and would confirm an advance to 7500*.

FTSE 100

* Target: 7100 + ( 7100 – 6700 ) = 7500

Long-term target is 8000: 7000 + (7000 – 6000).

Europe: Long-term buying pressure

The FTSE 100 is consolidating below resistance at 7350. Rising troughs on Twiggs Money Flow indicate strong buying pressure. Breakout above 7350 is likely and would signal an advance to 7500*. The long-term target is 8000.

FTSE 100

* Target: 7100 + ( 7100 – 6700 ) = 7500

Dow Jones Euro Stoxx 50 is similarly consolidating while Twiggs Money Flow reflects long-term buying pressure. Breakout above 3330 would signal a fresh advance with a target of 3500*.

Dow Jones Euro Stoxx 50

* Target: 3300 + ( 3300 – 3100 ) = 3500

Europe: More bull markets

The FTSE 100 continues to advance after respecting its new support level at 7000/7100. Rising troughs on Twiggs Money Flow indicate strong buying pressure. Follow-through above 7350 would signal an advance to 7500*. The long-term target is 8000.

FTSE 100

* Target: 7100 + ( 7100 – 6700 ) = 7500

A weak correction on Dow Jones Euro Stoxx 50 over the last 6 weeks suggests buying pressure, also reflected by rising Twiggs Money Flow. Recovery above 3300 signals a fresh advance with a target of 3500*.

Dow Jones Euro Stoxx 50

* Target: 3300 + ( 3300 – 3100 ) = 3500

Europe: Footsie finds its feet

The FTSE 100 respected its new support level at 7000/7100. Rising Twiggs Money Flow indicates buying pressure. Follow-through above 7350 would signal an advance to 7500* and offer a long-term target of 8000.

FTSE 100

* Target: 7100 + ( 7100 – 6700 ) = 7500

Dow Jones Euro Stoxx 50 is a long way below its 2007 peak at 4500 but has formed a solid base at 3000. Rising Twiggs Money Flow signals long-term buying pressure, while long tails on recent weekly candles indicate shorter term enthusiasm. Recovery above 3300 would signal a fresh advance.

Dow Jones Euro Stoxx 50

Europe: Dax & Footsie strengthen

Both the DAX and FTSE 100 display Twiggs Money Flow troughs above zero, indicating long-term buying pressure.

Germany’s DAX is approaching its 2015 high of 12400. Twiggs Money Flow signals long-term buying pressure but expect resistance between 12000 and 12400.

DAX

The FTSE 100 is retracing to test its new support level at 7000/7100. Rising Twiggs Money Flow indicates buying pressure. Respect of support is likely and would signal an advance to 7500*.

FTSE 100

* Target: 7100 + ( 7100 – 6700 ) = 7500

Europe on the mend

Bellwether European transport stock Deutsche Post (DHL is a subsidiary) is in a primary up-trend, indicating rising economic activity.

Deutsche Post

Dow Jones Euro Stoxx 50, representing 50 mega-stocks in the Eurozone, broke through 3100 after a lengthy consolidation (or “line” as Dow would have called it). Breakout matches a similar pattern on the DAX and signals a primary advance with a target of 3500*.

Dow Jones Euro Stoxx 50

* Target medium-term: 3100 + ( 3100 – 2700 ) = 3500

The Footsie (FTSE 100) has also been making some headway but is running into resistance at the all-time high of 7100. Declining Twiggs Money Flow, above zero, warns of medium-term selling pressure. Breach of 6700 remains unlikely but would warn of a correction to 6500.

FTSE 100

Footsie resurgence

The Footsie (FTSE 100) respected support at 6700 and a strong weekly candlestick suggests another test of the all-time high at 7100. A Twiggs Money Flow trough above zero would confirm long-term buying pressure. Breach of 6700 is now unlikely but would warn of a correction to 6500.

FTSE 100

Footsie selling pressure

The Footsie (FTSE 100) is again testing support at 6700. Declining Twiggs Money Flow warns of selling pressure. Breach of 6700 is likely and would warn of a correction to 6500.

FTSE 100