Levels to watch: FTSE, DAX and Dow

Indices are still struggling to find any kind of footing at present, and even the gains we are seeing this morning look shaky at best.

Data on a screen
Source: Bloomberg

Overall it is oil that is still doing the damage, although the turmoil in Russian markets doesn’t help matters. 

FTSE gains capped by 50-H MA

For the second time in the quarter, the FTSE 100 tested the 200-week moving average, although for the moment the index is staying firmly above this indicator. A weekly close below it would certainly put the cat among the pigeons, with a potential dip towards 5920.

The daily chart seems to be showing something of a possible pause in the slump – it may be the beginning of a bounce but we won’t know for the time being. A move back through 6300 is required to confirm the potential existence of a rally, and while the relative strength index has begun to rise it remains in oversold territory.

The 50-hour moving average continues to cap any gains, but a close above this would put the index on course for yesterday’s high at 6350.

DAX eyes 9530

The index finds itself below the 50-week moving average and is struggling to make much upward progress.

By contrast, on the daily chart, the 50-DMA is holding the market in place for now, having dipped below it this morning and tested the waters around 9200. A close back above 9400 would mark a turnaround, with a target of 9530, around the 200-DMA.

Any breach of 9200 targets 9090, and then 9000.

Dow RSI slightly up

Yesterday’s dip through 17,200 in the Dow Jones has been bought, and with the daily RSI turning high (if only slightly) there are still faint hopes that seasonality is coming into play to push the market higher. The 17,400 level is the first target on the daily chart, then on to 17,560 if this level is broken.

On the downside the first area to watch is the 100-DMA at 17,110, which was tested last night. Then, towards the 200-DMA at 16,880.

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