The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication.
FTSE RSI not yet oversold
The FTSE 100 failed to make a close through 6618, and trendline resistance is now looking to make a return to this month’s lows around 6500/10. Any falls through here would target next support around 6470 and, should the selloff gather legs, the 6400 level seems like a magnet. The daily relative strength index is not yet oversold and, while below the 200-DMA, the selling pressure may ramp up.
On the upside, the hourly RSI is looking slightly oversold and we may see a bounce back towards 6560 and the 100-hour moving average. Any moves back through the 200-DMA may see some respite for the UK benchmark.
DAX rally runs out of steam
For the DAX, the rally back to near the 100-DMA has run out of steam and we currently testing the 9200 level. A fall through here targets 9125, with key support coming from the 9000 then the 8940 levels.
A push through the 9360 level targets 9456, and only a close below the 50-DMA would argue for a run up towards 9500. A drop back through 14 March lows puts the bias on a pullback to the 200-DMA at 8860/70.
Dow has rocky 24 hours
The Dow Jones has a tumultuous evening in the aftermath of the Federal Reserve statement, yet remains above the 50- and 100-DMA. Support is coming from 16,167, with 16,124 and 16,066 coming in below that. A move through 16,280 would target 16,370 in the interim. Any falls back through 16,060 bring 15,970 into the frame.