FTSE100

FTSE remains supported and extended gains above target at 7221 (FE100% of wave C from 7077 trough).
Corrective dip from yesterday’s high at 7232 was so far contained at 7183, with fresh rally under way, as price was propped by weaker pound.
Bullish technicals are supportive, but risk of pullback seen on overbought slow stochastic.
Broken Kijun-sen (7158) should ideally hold to keep bulls intact for fresh attempts higher.
Close above 7221 to signal further upside and expose 7255 and 7276 (FE 123.6% and 138.2% respectively).
Conversely, loss of 7158 handle would increase downside risk, while return below daily Tenkan-sen (7128) would generate stronger bearish signal.

Res: 7221; 7232; 7255; 7276
Sup: 7188; 7169; 7158; 7128

DOW JONES

Strong three-day rally peaked near 20400, after meeting target at 20344 (Fibo 161.8% projection of the upleg from 15163 (2015 low). The rally may stall ahead of next targets at 20431 (Fibo 200% of the bull-leg from 19713, 31 Jan low) as daily RSI and slow stochastic are overbought and started to turn lower. No firmer reversal signal seen so far but downside risk exists. Yesterday’s low at 20225 marks solid support ahead of Friday’s low at 20126 and former high at 20072, reinforced by daily Tenkan-sen (now in sideways mode) which marks first pivot.

Res: 20395; 20431; 20500; 20653

Sup: 20357; 20225; 20126; 20072

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