Equities 09.01.2017

Equities 09.01.2017

FTSE100

FTSE hit fresh record high at 7174 today on extension of Friday’s bullish acceleration that signaled an end of two day consolidation under former high at 7147.

Strong bullish tone continues to dominate on daily technicals despite overbought conditions, showing scope for further upside extension towards next target at 7323 (Fibo 138.2% projection).

Ascending daily Tenkan-sen continues to underpin the action, currently at 7079.

We expect further upside, but looking for bearish signal on overbought daily studies.

Res: 7136; 7147; 7181; 7300

Sup: 7103; 7081; 7040; 7000

ftse-09-01

DAX

Dax accelerated sharply lower today, following rejection at 11630, just ahead of fresh high at 11648.
Fresh weakness pressures again first strong support at 11525 (n/t congestion floor / daily Tenkan-sen line), raising risk of further downside after double-top is forming at 11630/11648.
Near-term technicals are weaker, with daily RSI emerging from overbought zone that is generating bearish signal.
Clear break below 11525 trigger is needed to signal further easing and expose next pivot at 11400, break of which would signal pullback.
Extended consolidation could be expected while 11525 support is holding, but rising risk of correction is expected to limit upticks.

Res: 11600; 11630; 11648; 11700
Sup: 11525; 11485; 11460; 11400

dax-09-01, Market Analysis