FTSE and DAX Comment

Tuesday was a rather uneventful day for the FTSE most certainly not helped by the US being closed.

In fact the most exciting moment was the closing auction when it suddenly burst into life and lost 13.45 points, the biggest move of the day easily (5 min bar).

7350-7450 is still making inroads into being the next NZ, and the ratios continue to fall below the zone, highlighted by DR slipping from 7050 all the way to 6950.

As one can see from the table there is plenty of Y ratio above and yet it has not let go of R1 at 7350, so the jury is still deliberating we feel. Also please remember what we said about how weak R2 is at 7300 now.

Range:            7300  to  7350     or     7350  to  7450

Activity:          Moderate

Type:              Bullish

The most exciting moment for the DAX yesterday was also their auction where they managed to give up the rather impressive 23.3 points.

Of course here the NZ slipped a surprise 100 points on Tuesday and but for the smallest possible margin it would have dropped the same again today, so very likely it will be 12550-12650 tomorrow.

The other big difference here is R2 appears again below the zone, highlighting how weak the ratios are here if the collapsing zone had not already alerted you.

Not so much the jury being out here it’s more what they can or perhaps have got away with.

Range:            12350  to  12650

Activity:          Good

Type:              Bullish