FTSE100

FTSE hit fresh record high at 7291 today, driven by fresh weakness of British pound.

Steep, uninterrupted ascend extends into 15th straight day, extending the third wave of five-wave cycle from 6680 (05 Dec trough) above its FE123.6% target at 7260.

The wave shows no signs of fatigue for now, despite strongly overbought daily conditions and could travel to its FE138.2% at 7307, with possible extension towards 7381 (FE 161.8%).

Strong bullish sentiment maintains ascend, with shallow consolidative phases expected.

However, we may see an extended consolidation ahead of Tuesday’s UK PM’s speech, which is widely expected to confirm hard Brexit scenario and send FTSE higher.

Session low at 7252 marks initial support, ahead of last Friday’s low at 7140 and rising daily Tenkan-sen (currently at 7197) which is seen containing extend downticks.

Res: 7291; 7307; 7381; 7428
Sup: 7252; 7240; 7197; 7158

DAX

Dax continues to trade within 11488/11519 congestion, unable to establish in clear direction for almost two weeks.

Today’s gap-lower opening turns near-term focus lower and increases pressure on congestion floor.

The price moved below daily Tenkan-sen (currently at 11590) that now acts as initial resistance and maintains pressure.

Daily RSI is heading south after reversing from overbought territory and may signal correction.

Loss of 11488 support is needed to generate initial bearish signal and expose next pivot at 11400 (higher base / near Fibo 23.6% of 10399/11691 rally.

Otherwise, extended directionless trading could be expected while 11488 support is holding.

Res: 11590; 11633; 11648; 11691
Sup: 11526; 11488; 11416; 11400

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