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Levels to watch: FTSE, DAX and Dow

After big gains earlier in the week, momentum has stalled, but overall the buyers are still in control.

Data chart
Source: Bloomberg

FTSE continues to rally
The rally continues, although a dearth of big ticket RNS announcements has left the index with little momentum to build on yesterday’s stellar day. With the index now back above the October and December 2014 lows, we now look towards the zone around 6300/6400 from January as the next area where resistance may be found.

On the hourly chart the price is now testing the 200-hour simple moving average (6215), with intraday targets being 6340 and then 6406. Downside support is likely around 6100, and then 5900.

FTSE 100

DAX stalls, but looks likely to continue its gains
Gains have stalled here, for the time being, as buyers await fresh news, but overall the trend is still up. The next target is the intraday peak from 21 August, at 10,448, with a close above here targeting a move towards 10,670. Dip buyers should regard any drop back today as another chance to step back into this rally. I would not become unduly concerned unless the index slips back towards 9600. 

DAX

Dow set to rally
The pattern is being repeated here, as the index consolidates following big moves. Having closed the gap down from the beginning of the week, more gains are likely.

A move in the direction of 17,000 is still likely, and as with other indices intraday dips should not be unduly concerning. Rising trendline support from the lows of Wednesday’s session should come into play around 16,340. 

Dow Jones

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