Key index levels: technicals for FTSE, DAX and Dow

The FTSE is on the front foot today, and may well attempt a move through the 2 May intraday highs. 

FTSE finds strong support

The 200-hour MA has provided ample support to the FTSE 100, coinciding with the 6770 level, yet while we are looking at an overbought signal on both the daily and hourly relative strength index, any moves through the top of the recent range could be viewed as bullish.

The daily bullish channel in situ since mid-October provides a target and, should we see a break through the February highs of 6886, we could then expect to see 6980 in view.

Any retracements through the 6770/80 level take us back to 6745.

Dow upside remains bias

The Dow Jones has also seen buying, around the 50-DMA; while this is in place, the upside remains the bias. Nevertheless, as we approach 16,600, the markets still seem a little uncertain about a break higher. While above the 16,500 level, a decent move through 16,550 means an attack at the top end seems likely, yet, given the triple-digit gains yesterday, we may well see a bout of profit-taking here.

Any declines back through 16,500 put the 16,466 back in view.

DAX eyes 9600 level

Again, the downtrend from the highs remains the key barrier to the DAX. The 50-DMA here is also providing the buy-on-the-dips signal. Any moves back through it target 9264.

A break above the 9600/10 level would see a run towards 9641.

IGA, may distribute information/research produced by its respective foreign marketing partners within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

This information/research prepared by IGA or IGA Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

See important Research Disclaimer.