Levels to watch: FTSE, DAX and Dow

Markets continue to move higher, with buyers still active ahead of tomorrow’s European Central Bank meeting. 

A chart with a man's reflection
Source: Bloomberg

FTSE above 6400

Two days of gains have resulted in the index moving above the key 6400 level. Further upside targets lie around 6460 and then 6492, with a breakout above the latter targeting the 6600 area, near the 200-day simple moving average (6612) and at the top end of the current rising channel. Bears will struggle to get this index lower unless they can get it back below 6375, at which point 6340 and then 6316 become support. 

FTSE 100 chart

DAX stumbles ahead of ECB meeting

A drop yesterday makes things look a bit more difficult for the bulls, but with the ECB meeting getting ever closer they will not have it all their own way. If the index can hold above 11,230 then it will still likely fall into the bullish category, with a target of 11,400 and then on to 11,600. Further bearish momentum is likely to encounter support around 11,193 and 11,106, the latter being the 200-day SMA. So far the rising trend from the September low has yet to be imperiled, with support here entering around the 11,000 mark.

DAX chart

Dow buyers remain active

The index has yet to break through 18,000, which will be the real bullish sign, but the continued unwillingness to go below 17,800 indicates that buyers are still active. A break through this area would head towards 18,155 and then on towards 18,350. If 17,800 support is broken, then we look to 17,713 and then 17,659 as areas where more buyers may enter the fray. 

Dow Jones chart

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