FTSE100

FTSE has completed 7283/7227 correction, as strong recovery from 7227 (21 Feb trough) extends for the second day and approaches key barrier at 7291 (16 Jan record high).

Rising 10SMA that contained correction, continues to underpin the action (currently at 7245), with regain of 7291 target to confirm full retracement of larger 7291/7024 (16 Jan / 02 Feb) corrective pullback and signal fresh upside.

Extended wave C (from 7077 trough) of five-wave cycle from 7024 (02 Feb correction bottom) could extend towards its Fibonacci expansion levels of 161.8%, 176.4% and 200% at 7310; 7331 and 7365 respectively.

Session low offers initial support at 7260, with rising 10SMA expected to contain extended dips.

Res: 7291; 7310; 7331; 7365
Sup: 7260; 7245; 7227; 7213

DAX

Dax is attempting to sustain break above psychological 12000 barrier that was cracked yesterday, on extension of Tuesday’s strong rally from 11794 to 11994 (the biggest one-day gains since 25 Jan).

Strong bullish sentiment could drive the price towards Fibo projection targets at 12059 and 12161 in extension, however bulls may be deflated by overbought daily studies that warn of correction, but no firmer bearish signals seen so far.

Rising daily Tenkan-sen (currently at 11845) is expected to contain corrective dips.

Res: 12028; 12059; 12100; 12161
Sup: 12000; 11893; 11845; 11794

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