Key index levels: technicals for FTSE, DAX and Dow

There is very little economic data to get the teeth into today other than US retail sales

The focus appears to be on geopolitical concerns and of course the overvaluation of the tech sector. The clear move from growth into value stocks on the FTSE today suggests a risk-off environment for now.

Ukraine crisis concerns DAX traders

DAX futures took a gap down this morning as the Ukrainian crisis re-established itself as an investor concern.

We have now seen a bounce to fill that gap, so we will be watching the 9195 lows of this morning to dictate today’s direction. For now, bids are found at the 9220 level – the 50% retracement of the past month’s entire upside action.

The previous support around the 9280 level should now be the resistance to overcome, and any moves through it target 9315. While below 9280, there remains a risk of retreating to the 200-day moving average at 9000. The daily relative strength index is below 50 and suggests that momentum favours the downside.

FTSE finds strong resistance

The FTSE has fallen through the lows of 8 April and the 38.2% retracement of the June to February moves.

A great deal of resistance lies at the 6550-60 level, and the RSI on the daily chart also suggests a return to 6485 may be on the cards. Any moves through this support (which has acted as support throughout March) puts the 6400 level in view.

If we see a push back through the 6560 level then a test of the 50-DMA at 6580 is possible.

Dow could move below 16,000

The Dow Jones, as per previous commentary, made its way back to 16,030 and beyond. While below this, there is a risk of a breakdown from the psychological level of 16,000 towards 15,850 and the 200-DMA at 15,780. For now, this is providing a base and the four-hour chart is quite oversold at this point so we may well see a pull back to 16,090.

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