Key index levels: technicals for FTSE, DAX and Dow

The FTSE has been putting in a series of lower highs and lower lows since 15 May, and now the onus is on the index to establish itself above the 6860 level if we are to retarget the recent highs around 6890.

FTSE supported by 6800

Yesterday confirmed the 6800 level as a support point, and while this holds there is a propensity for a rangebound price action – a move through the 6900 region takes us to the top of the daily bull channel around 6988.

It should be noted that we are trading almost 3% above the 200-day moving average and the index, since October, has tended to make drives higher and then return to this average over the course of around five to six weeks. Presently, the FTSE has spent just over a month trading above and away from it. As before, the 6770 level represents something of a pivotal area for the benchmark so any declines through 6800 will need to hold this support if the upside is to continue.

DAX holds above 50-DMA

The DAX has held the 50-DMA and the buying support at the 9530 level has resulted in a quite a bullish daily candle, leaving us with intraday support at 9630-5.

Above this metric, an argument can be made for a move back towards the recent highs around 9812. Any moves back through 9530 may target 9485, then 9355.

Dow four-hour uptrend intact

As with the DAX, the Dow Jones has found support at the 50-DMA and the early 16,400s. The overall four-hour uptrend remains intact despite a slight and short-lived move through the 200-hour MA. A move through 16,580 needs to occur if we are to make any inroads back to the 16,620 level.

For now, the index appears to be seeing a firm lift through 16,530 and the 100-hour MA. Momentum from the relative strength index seems to be confirming the move, yet there is still an element of negative divergence so we may see the 200-hour MA challenged in the near-term as long as the index can stay above the 16,530 level.

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