Germany and London FTSE, confirmed in downtrend, target downside and supports 10-13-2014

We are closely monitoring Germany for the past days/weeks. And the Head and Shoulder formation was confirmed when it closed 2.3% lower last Friday to 8788. The neckline was 9000 and Head and Shoulder pattern was clearly in place.

We laid down some important supports or target downside for Germany

1st - 2year uptrend line since 2012(in BLUE) which broke down with target of 8500

2nd - Head and Shoulder pattern with target of 8000

38.2% retracement of entire Primary III since 2011 could also be around 8180 level

50% retracement of entire Primary III since 2011 could also be around 7500

Roughly saying, if Germany also enters Primary Wave IV, we have a target of 7500-8180 at most or 8000-8500 as a safer bet. Charts looks oversold with RSI 22.

* 2009-2014 bull market uptrend line is at 6750.

London also joined the selloff when it broke below the descending triangle. We are closely monitoring the formation since it began pushing upwards to the 6850 level to make new highs for the year. It managed to hit 6850 6times this year but often closed below that level.

The descending triangle formation has a very low target of 6000-6100.

Other immediate supports are 6337 and 6030

Fibonacci retracements from 2011 lows have a target 6000(38.2%) and 5850(50%)

while Fobonacci retracements from 2012 lows have a target of 6300(38.2%) and 6000(50%)

Roughly saying, London FTSE with RSI of 24 can get lower with target downside of 6000-6300.

* 2010-2014 uptrend line has a strong support at 6000.