It was looking like a decent session for indices last night, as US markets enjoyed good gains. The ECB’s decision to pull funding for Greek banks earlier than expected caused a rapid selloff, but it seems that the effect was short-lived. Although still off last night’s highs, indices are clawing their way higher once again.
FTSE opens below trendline
The FTSE has opened below the trendline off the low of mid-January, but is trying hard to move back above this line. Any rally to the upside targets 6900; the big level not just from this week, but all of last year.
If we do see a move back below 6800, then the 6725 area is still a possible support, followed by 6620, with the potential for support around the 200-daily moving average, just as has occurred this week in US indices.
The price has moved back above the 200-hour MA in early trading, with intraday moves higher targeting 6860 and being supported around the 6800 area.
DAX drop bring out buyers
Yet again it is the hourly chart that is keeping the DAX market up here, with a drop back to 10,800 bringing out the buyers once again. The target remains the 11,000 zone, while downside support is possible around 10,650 should we have further bad news from the eurozone that sees the hourly rising trend broken for the first time.
Dow facing possible breakout
The Dow Jones finished the session back below the 50-DMA yesterday, as was the case on Tuesday. The downtrend off the December highs has held for now, which would suggest that the price may encounter resistance at 17,720, but with a rising relative strength index we may see a breakout.
A drop lower would target the 100-MA at 17,400 and then the rising trendline off the October lows, currently around 17,130.