Key levels: technicals for FTSE and Dow

Recoveries in the mining sector and better economic data from the eurozone have seen global indices pull-back from yesterday’s lows. 

FTSE moves back above 50-hour-moving-average

The FTSE 100 has stuck to its script from yesterday; the 6600 level remains untested as we see price action move back above the 50-hour moving average. Yesterday afternoon saw intraday losses pared followed moves in US indices. Once again the levels are consistent – a break below 6630 targets yesterday’s lows of 6606.

The 6680/85 metric has presented a problem for the bulls for the past week and, until we see a daily close through here, we might expect the recent tight-range consolidation patterns to continue. A move through 6716 puts 6770 back in sight.

Dow breaks 16,000

Once again the Dow Jones has found its way above the 16,000 level, and once again the barrier of 16,030 continues to tamp upside. Any significant moves through here (preferably a daily close) will put the index in a good position to test the 50-daily moving average. Any push through the 16,120 level puts it on a trajectory towards 16,297.

Support comes from the 100-DMA of 15,850/60. 

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