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Levels to watch: FTSE, DAX and Dow

The Federal Reserve meeting yesterday provided a chance for indices to push higher, with more gains looking likely from here. 

Data on screen
Source: Bloomberg

FTSE 100 eyes 6815

The rally is now almost a week old, with dips still being bought. There is a shallow descending line of resistance from the August high, which may come into play around 6912, but a move through here leaves the index on course to hit 6950.

Yesterday the 50-hour simple moving average (SMA) (6845) came into play to prevent further downside ahead of the Federal Open Market Committee, and since then the price has pushed on.

A move through key support at 6815 would be the first indication that the bounce has run its course.

FTSE 100 daily chart

DAX  could clear 12 September high

Eurozone markets have been playing catch-up, but are now too in an upward trend, with the DAX pointing the way. The first target is a move through yesterday’s high of 10,536, which would clear the way to the 12 September high at 10,556, and then on towards 10,800.

Yesterday’s dip at 10,417 provided support, so this is the first area to watch if any weakness develops.

DAX daily chart

Dow Jones moves to 50-day SMA

The index pushed through 18,254 yesterday, breaking out of its short-term range. Now it moves on to 18,360, then to the 50-day SMA at 18,428.

Continued positive momentum should see the index push on towards the August highs at 18,680. 

Dow daily chart

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