Levels to watch: FTSE, DAX and Dow

The end of the month and the quarter has brought out the buyers, with key supports holding again across a number of indices. 

Source: Bloomberg

FTSE 100 eyes 6200

The index continues to find support around the 5930 level, and has moved higher this morning. Once again, the lows of last week appear to be holding, with dips below 5900 bringing out the buyers. Upside targets now lie towards 6002 and 6050.

If the rally can be maintained then the next target would be around 6200. A turn lower from current levels would encounter support at 5890 and then head on towards 5840.

The daily RSI has turned higher once again, but remains below the 50 mark, indicating that buying pressure is still not overwhelmingly strong. Daily stochastics have yet to turn bullish either, so until this transpires we may see a repetition of the range trading of early September, just at a lower level.

FTSE 100 chart

DAX could drop from 200-hour SMA

The overnight move in the DAX will have caught out more than a few shorts, but the hesitancy that the index showed about heading below 9500 yesterday indicated that, once again, this level is a line in the sand for buyers.

The RSI has surged along with the price, and a close higher today should trigger a bullish stochastic crossover as well. The zone around 9735 remains the first key target, being the highs from last Friday.

The index has now run into the 200-hour SMA at 9678, so we may see a drop back from here, but 9584 may provide short-term support. 

DAX chart

Dow could bounce towards 16,500

Yet again 16,000 has held for the index, and with daily stochastics and the RSI moving higher we may see another short-term bounce towards 16,500.

Only if the index closes above that level will a run to the 50-day SMA at 16,828 be on the cards. Dips below 16,000 should continue to be bought. 

Dow Jones chart

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