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FTSE drifting lower
The 6960 level stands as resistance for the FTSE, as the index drifts lower while holding for the time being above 6900. First-line support is found around the 20-day moving average, while the 6800 level should once again come into play as support if we see a more significant move lower.
The index has yet to test rising support from the December lows this month, but that also comes into the frame around 6800. Any breakout above 6960 puts the index back on a bullish course.
DAX RSI overbought
This index has found it hard to push beyond the 11,235 area, and with the daily relative strength index now overbought again we could see another dip towards 10,930 and the 20-DMA. Stochastics have yet to point to any major move lower, with the indicator still suggesting more upside is on its way.
Dow momentum still present
There is still some more upside here before the Dow Jones runs into the rising resistance line that it last touched in December. We could see the index move up as far as 18,330 before a retracement sets in, and with the RSI yet to move into overbought territory this theory has some strength behind it.
The four-hour chart still looks bullish, with the 20- and 50-day exponential moving averages moving higher, continuing the theme of the month. Until the former crosses back below the latter, bears are likely to remain frustrated.