Technical analysis: key levels for FTSE, DAX and Dow

Two words: Jackson Hole. Light volumes and a degree of skittishness, ahead of Janet Yellen and Mario Draghi speaking later today, will likely result in very little movement until the market digests the rhetoric. It may well be a long day.

DAX logo
Source: Bloomberg

6744 supporting FTSE

The FTSE remains capped by the 23.6% Fibonacci level at 6778, but has managed to engage in a higher high at 6787 this morning. Again the support resides at 6744 and the 50-day moving average. The relative strength index is turning down a little, suggesting some of the momentum from recent days is blighted in the absence of any macro data.

A move through the 6780, on a daily close, would still target 6800 then 6830.

The 100-hour MA has been a decent support metric on the intraday and it is worth keeping any eye on that – any declines through it will challenge the near-term support at 6745-50. The potential for a double top on the hourly chart sees the neckline at 6740.

The 200-hour MA at 6715 will then come into play with the 200-DMA at 6705 below that.

DAX runs into 9390

The DAX took a stab at the 9400 level this morning but has so far been unable to capitalise on the move, with the price action running into previous resistance/support last relevant back in May at 9390/9400. Nevertheless, the fact that we managed to break the 38.2 Fib level at 9340 suggests that support can now be found at this juncture.

The 50-hour MA is keeping the downside in check for now – the key level to cross through will be 9460 if the DAX is to provide any real bullish moves.

Below the 50-hour MA lies the 100-hour MA at 9325. Intraday main support comes from the 9250 level.

Dow close to all-time highs

The Dow Jones, emboldened by the better-than-expected macro data yesterday, has continued to reach towards the all-time highs at 17,150. Interestingly, it has failed to emulate the S&P 500 in making a brand new high just yet. Watch out for any moves through 17,077 (yesterday’s highs) for any upside move triggers.

The daily RSI is starting to look a little overextended but decent support will be found at 17,000, with the 50-DMA below that at 16,860.

On the intraday, momentum has run out of steam and we are in consolidative mode. 

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