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FTSE gains capped by key resistance level
The FTSE has added +0.08% during Monday’s opening session, trading at 6,623 after posting a high of 6,658 in search of topside resistance which currently rests at 6,676. Should this topside level hold then it is likely to result in a possible reversal, which could see a retest of 6,525. However, in order to confirm a possible bearish bias then near-term support of 6,606 will need to be broken, but should the level hold then a retest of the 6,676 level could once again be seen.
Rangebound DAX lacks directional bias
The DAX has lost -0.85% so far on Monday, having posted a daily low of 9,804 before retracing back up to its current level of 9,840. The sharp move lower on Monday has resulted in an oversold indicator on the relative strength index (RSI), which could now result in a period of consolidation before resuming a possible bearish trend. Should the intermediate topside support level of 9,947 hold then the next clear area of downside resistance is likely to be seen at 9,735.8.
Dow in search of support
The Dow Jones Industrial Average is trading lower by -0.28%, at 18,017 on Monday, after breaking above the psychological 18,000 level on Dec 23 then touching an all-time high of 18,110 on Dec 26 that coincided with an oversold reading of 82 on its RSI indicator. This is now likely to act as an area of topside resistance, capping further gains over the short term and could therefore see a retest of the 17,857 level.