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FTSE still capped by 200-hour MA
A move through 6843 would see the price break from the bearish trading channel which came into being on 29 May. This would then target 6870.
The 6800 level was tested but not breached, and as long as it holds we may see the FTSE in something of a narrow 40-point range. The four-hour chart indicates that the 200-period MA is supporting the price action, while the top of the range coincides with the 50- and 100-period MAs.
The usual 6770 level is the one to watch should we see any significant selloffs.
Dow makes fresh all-time highs
The Dow Jones punctured the recent all-time high and went on to make a fresh one yesterday. This now makes the 16,800 level, 16,770, then 16,730 the near-term supports. Major support comes in at 16,620.
The relative strength index on the daily chart is slightly overbought, yet if the market can sustain a move higher to the top of the bullish channel from the 14 April lows, then the new target could be the grand old 17,000 level.
We may see some pullbacks prior to this.
DAX hits 10,000 mark
The Germany 30 broke out the bearish short-term channel and managed to hit the 10,000 mark finally before retreating rather abruptly. Price action is currently finding support on the convergence of the 50-,100- and 200-hour MAs. With the hourly RSI also rising, there is still some momentum left in this market – yet staging a close above the 9970 level has yet to occur for the DAX.
The daily RSI is also showing some mild divergence, so I would watch the lows of 4 June at 9865 for any confirmation that the market may see a degree of correction. Key support comes in at 9812.