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Technical Update - DAX, FTSE 100 & FTSE 250

Equities 3 minutes to read
KCL
Kim Cramer Larsson

Technical Analyst, Saxo Bank

Summary:  DAX cancelling down trend build up. Uptrend could be extended.
FTSE 100 and FTSE 250 range bound
With levels on GER40, UK100 and UK250MID


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DAX
broke below lower rising trend line last week only for buyers to lift it back above cancelling the bearish break out. Testing February peak the Index is set for higher levels.
RSI still showing divergence since January but is now back above 60 supporting the bullish move. If closing above 15,659 uptrend is confirmed and DAX is set for a push to all-time highs around 16,290. Minor resistance at 15,736.
For DAX to turn bearish a close below 15,150 is needed

dax d 6mar
Source all charts and data: Saxo Group

The GER40 cfd is within a few cents of the February peak at 15,656. A close above will confirm uptrend has resumed despite divergence on RSI. An uptrend that will likely take GER40 to all-time high level around 16,298. Minor resistance at 15,738.

For GER40 to turn bearish a close below 15,231 is needed.

ger40 d 6mar

FTSE 100 is holding up above 7,850 support. A close below FTSE will confirm a down trend possible taking the Index down to around 7,708.
Until that scenario plays out the uptrend is intact. However, RSI is showing divergence indicating a correction should be expected.

ftse100 d 6mar

UK100 cfd levels. Support at 7,848 and 7,700. Uptrend is intact until a break below 7,848.

uk100 d 6mar
FTSE 250 still range bound between 19,574 - 19,938. A close below 19,574 i.e., the Neckline will confirm the Shoulder-Head-Shoulder pattern to unfold with potential down to 18,500. A close above the uptrend is likely to resume.
ftse250 d 6mar

Levels on UK250MID cfd

uk250 d 6mar

RSI divergence explained: When instrument price is making a new high/low but RSI values are not making new high/low at the same time. That is a sign of imbalance in the market and an weakening of the uptrend/downtrend. Divergence or imbalance in the market can go on for quite some time but not forever. It is an indication of an exhaustion of the trend

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