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.