FTSE100

FTSE maintains strong bullish tone and is consolidating under fresh record high at 7220, posted yesterday.

Consolidation is holding within 7190/7220 range, with broken FE 100% of the wave C from 6869 (13 Dec trough), offering solid support for now.

With no signals of reversal on strongly overbought daily studies, strong bullish sentiment is expected to drive the price higher.

Fresh upside acceleration may extend the wave towards its Fibonacci expansion levels at 7260 (FE 123.6%) and 7307 (FE 138.2%).

Initial support lies at 7190, followed by yesterday’s low at 7158 and the first pivot, ascending daily 10SMA, currently at 7124.

Only break here would question near-term bulls.

Res: 7260; 7307; 7381; 7428
Sup: 7190; 7158; 7124; 7103

DAX

Dax continues to trade in choppy and directionless near-term mode, with consolidation being supported by sideways-moving daily Tenkan-sen line (11525) which contained several downside attempts. While the latter is holding, we can expect prolonged sideways trade with upside to remain in focus. Sustained break above strong barriers at 11648/11671 (03 Jan high / 06 Aug 2015 peak) would open way for fresh bullish extension towards 11804 (20 July 2015 peak). Caution on daily RSI that attempting to reverse from overbought territory. Firm break below 11525 would be seen as initial negative signal for easing towards next pivot at 11400 higher base).

Res: 11600; 11630; 11648; 11700

Sup: 11525; 11485; 11460; 11400

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