Key index levels: technicals for FTSE, DAX, Dow

The long-term trendline from June 2012 continues to provide rising support to upside gains, despite the fact that the bulls cannot shift the FTSE back up through the 200-daily moving average of 6588.

Bulls fail to push FTSE through 200-DMA

We have seen the UK benchmark stuck in a tight range over the past few trading sessions, capped by 6560/70 and a foundation at 6490/6500. A break through the top side would be likely to result in a measured move towards 6525, while any sustained moves back through the 6500 level could see a return to 6420.

The hourly RSI is confirming the short-term trend to the upside, yet with both the 200-hour and 100-hour moving averages above current action, the potential fallout (at least until the US opens) is for sideways moves.

DAX meets overhead resistance from 50-DMA

Price action on the DAX remains resolutely below the 100-DMA and, until we can get a concerted break and daily close through 9370, we can perhaps expect a degree of consolidation with support coming in around 9250/60. Any pullbacks below this support should see buyers at 9190/9200.

Overhead resistance comes from the 50-DMA, currently at 9450. Any moves through this metric would target 9590.

On the intraday, the bullish channel from the 14 March lows is being challenged, yet prices remain above the key moving averages on the H1 chart. The trendline resistance from the 28 February highs is hampering the upside here, and we are entering a narrowing range – with a steady relative strength index – at 50.

DOW’s February support still unbreached

The Dow Jones has found a foundation around 16,296, and the trendline support from early February remains unbreached. The bears managed to push the price back from 16,450 during Friday’s session and we are now capped by the 16,360 level, having been unable to close above this for the past fortnight.

While above the 50-,100- and 200-hour moving averages, the propensity to break higher remains likely, and we could see 16,400 tested in the near term on the break of 16,360.

Any moves back through 16,260 should find rising support from the short-term trendline coming from the 17 March lows of around 16,230. Should that fail then the 16,200 may rescue from the downside.

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