Key index levels: technicals for FTSE, DAX and Dow

In a fairly bullish turn of events, the FTSE has pushed through the 6800 level.

FTSE to target 6835

Having cleared the 6770 level with such aplomb, the relative strength index is now around 78 and registering its most oversold level since February.

The index looks set to target 6835 now, and support should come from the 6800 and 6770-80 level below that. A puncture of the resistance puts us on track for a move toward the 6850 highs.

Dow could test 4 April highs

A record closing high for the Dow Jones last night, despite the additional tapering of quantitative easing, has put the index on a mission to tackle 16,600. Given the recent range, a close through here could see a measured move towards 17,000 in short order.

Beware of a bull trap, however, the daily and four-hour RSI are showing some negative divergence. It might be premature to expect this level of bullishness today particularly with the all-important non-farm payrolls out tomorrow.

Nevertheless, while the momentum is still there, we may see the highs of 4 April tested today upon a break of 16,608. Pullbacks can be expected to remain confined to the 16,570 level, with the 50-hour moving average coming below that at 16,540.

DAX RSI showing upside momentum

The DAX has also overcome some resistance in the 9600 level. The 24 April highs are the ones to watch now at 9647, and with the daily RSI still showing upside momentum a break above targets the 9721 level.

Support lies at 9590 then 9553. 

The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication.