Home » Market News » Financials & Property » FTSE remains in the range, DAX attempted break runs into resistance
Guardian Stockbrokers

FTSE remains in the range, DAX attempted break runs into resistance

The FTSE is expected to open back in the range which dominated the second half of last week. Despite price action over yesterday pointing towards a rally outside of this 6250-6281 range, this is less reliable than data taking place during open hours. As such, it is worthwhile simply continuing to play the range until we see a real breakout. With that in mind, any move back down towards 6250 levels seem a good place to get long into the uptrend. We await a closed hourly candle outside of this range to signify a break and potential spark for the next big move in this index.

DAX attempted break runs into resistance

The DAX has ground higher over the past 24 hours, with the index briefly posting a new intraday high this morning. However, this appears to be on the wane, with price likely to come into contact with an ascending trendline of support. Below this is the crucial 50-hour SMA, which has been consistently holding up price of late. As such, the bullish view holds, with near term resistance at 10373 and the bigger level of 10532. However, should we see an hourly close below 10282, this would create a more bearish short term picture, with 10244 the next key level to the downside.

Dow trading within narrow range

The Dow is selling off into a key near term support level at 17894, which represents both yesterday’s low and last week’s high. It is worth noting that yesterday was a bank holiday in the US and thus this range is less reliable than it would be during market hours. Nevertheless, given the fact that 107894 also represents the last week’s high, it is likely that this level will once more represent a crucial inflection point in today’s trade. Should it hold, we are likely to rally back into 17933. Conversely, a close below 17894 would look towards 17845 and 17801 as the next potential support levels to watch.

Disclaimer: Statements in this article should not be considered investment advice, which is best sought directly from a qualified professional.