DAX and FTSC

 Time sure flies, it was only a few days ago I up-dated my observation on Dow Jones, Nikkei and Hang Seng. While seemingly Nikkei an Dow Jones retreated while Hang Seng gained in its position, there is no change in the status of the 3 counters. Reason being that none of them managed to break their resistance or support level.

Fig 1. Hang Seng, Nikkei and Dow Jones weekly chart

looking at the chart, the 8-week moving average is resisting Hang Seng from ascending, while Nikkei is supported by both 21 and 55-week moving averages while Dow Jones by 8 and 21-week moving averages.

While all three counters were into a week's of congestion after a steep ascend,  Both Nikkei and Dow have probability of scaling higher, there are less resistance in that direction. Hang Seng may also ascend higher in the coming week, but I feel that it is likely to re-test the8-week moving average and even the 21-week's.  The resistance is going to be stronger the higher it goes.

The coming week will be interesting for these 3 counters. What about other counters? May be we should look at DAX and FTSC.

Fig2 FTSC and DAX weekly chart

It is interesting thatv I am seeing similar deviation in the direction of these counters. While FTSC managed to bounced above the moving averages, DAX is tested 89-week moving average, failed and retreated, forming a shooting star candle stick. What does it mean to me?

In the first place, DAX actually opened gapped down on week of 27th February. what it seem to be doing is to cover its gap. It is now resisted by both 55 and 89-week moving averages. Is DAX descending from next week onward? Coming week may be interesting. 

DAX has a strong ascension for 2 weeks followed by 2 weeks of congestion with small bodies. While wI see a shooting star potentially meaning a reversal. It is ossible that DAX is undecided at the moment, it may stay within the boundary of 89 and 144-week moving averages in the coming week or more before its next break out. May be this is due to its indecisiveness in its direction on Ukraine-Russia warfare.

While FTSC seems to have less resistance, the general ascension is gradual. I am not sure why. Can it be due to UK having a weaker economy after its exit from Europe? To me, a gradual climb after a steep drop in 2020 makes me feel that it is in a counter wave and it may eventually fall lower after this. Short term wise, it is going higher the next few weeks.