Good day. It's Francis Hunt, the Market Sniper. I'm going to have a look at indices and equities today.

I've got the TecDAX up at the moment. Of all the indices, it's probably the one I like the most. So this is German index but with specific reference to technology companies.

It sets up very, very nicely. We've had our break. We had an opportunity to enter which I took. Notice how after the gap over here we got a pullback, so a second chance to get long and now it is making good progress and heading towards an interim target level.

So I like the German index with reference to technology.

A couple of local UK shares that have been trading have given great runs once again on our inflation/deflation theme. I believe, because we're seeing slight devaluation of currency, there is more scope for equities to push higher and a bias to being long gold and even excepting the fact that equities can go higher. Look at this nice break on June 11th. The target has been made in short succession, a very short time in the market and we've taken a great return.

Rolls-Royce is one I brought up last time I was on about four or five weeks ago. This was the chart I put in front of you then suggesting a buy entry at 5.96 to 5.70. This is a really interesting case study.

You know, when you've got a key level such as the 5.96 level was when the price actually gaps right over it. This brings into question orders. You wouldn't want to have been fooled on the open on that particular day, so we have a buy stop but we have a buy stop limit. The limit means as that level is taken out we won't allow slippage beyond a certain point. So for entries for breakouts, a buy stop limit is what we use. So you wouldn't have been fooled, however, it went straight to an interim target and pulled back. Second change opportunity for you to get into the trade.

So I've dropped down a timeframe onto the four hourly. So here we go. Our green line was broken. It went straight through its interim target and made it and then stalled. This gave us the opportunity to enter below our original entry.

Why? Because we know it has already broken out and has given us the second chance opportunity to get long, so clearly, this is a breakout that wants to move. The gap was closed, or the window in candlestick chart was closed and then it was free to progress. It has now down so very briskly and has just reached an interim target and will probably stall slightly for a while. Hold on to those Rolls-Royce longs. We're looking for 6.82 to come in the end. So that's looking very positive and I hope some of you got to benefit from that.

Other UK shares of some interest. Mitchells & Butlers once again set up very nicely. You can see what I'm predicting for it. There was a pattern within a pattern. We're catching the breakouts. They're pulling back and having a little bit of progress decay at the key levels before making their way. I'm looking for £3.77 in quite short succession for Mitchells & Butlers.

An interesting one, it's a US stock but it's one we all know Time Warner. I want to bring this one out because it has just broken. So for those of you who may have missed some trades and were looking for something, these can be spread bets. Even though they're US shares there is good availability. Just taken out the key level.

I've been touching a little bit on Fibonacci in the previous two days' clips, so I'm just going to bring you in with a bit of Fibonacci analysis over here. The rules of Fibonacci say don't take necessarily the most extreme high to the most extreme low. Take it where the momentum of the move is at its highest. So you'll see at point 2 I've got a high and point 2 again at the low, so I've taken the Fibonacci expansion across the move.

Constance Brown, one of the lady experts on Fibonacci analysis, says if your 50 per cent line falls on a gap you've probably got it right. That's exactly what happened. We caught the key momentum part of that capitulation down in the blue circled area. That's number 4.

Note how the 61.8 per cent level, that's that golden mean, one of the most special lines within the Fibonacci proved its support and the other point I really want you to see is see how it is tied in with the axis of this Hunt Volatility Funnel that's now coming. We are at a key level. It served as a resistance at point 6 and now we're congesting around it setting up, winding up for another break to the upside in my belief. Also, you can see a bottom that was found at 2 served as great support there at point 5. So a little bit of Fib analysis, the confluence of the points and the lines with the Hunt Volatility Funnel, they're tying up and I believe they're flagging something interesting.

Point 1 is the last one. See how the 61.8 per cent expansion to the upside was right near the all-time high for the period under review. Walt Disney's arrival and it's already broken. It has moved, so we're doing a little bit of an inter-market analysis. You can see that they're both very similar in shape and form. Possibly an industry area of great note.

That's Francis Hunt for CantosCharts. You can follow me on Twitter at the Market Sniper or on my blog themarketsniper.com. Have a lovely day.