FTSE hit by ex-dividend stocks
At the time of writing, the FTSE is engaged in a battle to hold above yesterday’s lows, hit by ex-dividend stocks and bad news from airlines and engineers.
What we can see is that upward progress remains absent. The index briefly touched 6880 during Monday’s session, but since then it has repeated the pattern of earlier in the year, being unable to hold above 6870.
On the downside, 6816 provides support and should help to stem any selling, but the loss of the 200-hour moving average signals that there is scope to test the Friday lows.
Lufthansa knocks DAX lower
A similar situation prevails here. Although it was able to close above 10,000 yesterday, the drop in Lufthansa shares following a surprise profit warning has led to a fall below the magic round number.
The 200-hour MA is acting as support for now, leaving the index within easy distance of 10,000, having briefly tested support close to 9942.
If the drop into oversold levels on an hourly chart is not reversed, then a move towards 9772 is possible, but at present it does seem like the battle for 10,000 is over yet.
Dow could target 17,000
The 16,896 level is holding as support for now, leaving us in a range bound by this level on the bottom and 16,968 on the top. The index is heading towards oversold levels on an hourly chart, but may find support at the 100-hour MA.
A close above 16,970 should put the index on track for 17,000, continuing the run of fresh all-time highs.