Moving averages support intraday downside
The FTSE managed a 1% gain yesterday, closing at 6736, but is struggling to break through 6760 this morning. This is the 76.4% retracement on the one-hour chart from the highs of 21 January to the lows of 3 February.
While above the 6710 there is still a propensity to move higher, with the target remaining at 6770 in the near-term; particularly with the convergence of the 50-, 100-, and 200-hour moving averages supporting any intraday downside.
DAX dips below 50-hour moving average
The DAX price action has poked below the 50-hour moving average today, ahead of ZEW sentiment data. Yesterday’s session had a narrow range and the doji candle, followed by the downside today, could suggest that we will see lower prices in the near-term.
With the indices at 9637 at time of writing, any prolonged moves to the downside should find support at 9600/05. The support below that is 9568.
Resistance at 9683 is quite strong but any breach should bring about a measured move towards 9730 highs, seen on 23 January.
Dow sees 16,215 as barrier to upside
The Dow futures are trading above the 50-daily moving average, with 16,215 acting as a barrier to upside for now. A breakthrough here targets 16,345.
The one-hour trendline support from 5 February lows could be tested today at 16,130. Any break below here brings 16,040/50 into view, with 15,962 below that.