Checking on FTSE and DAX - 12th Dec 2023

I was going through the charts at the end of the week, and I was not very keen on having any entries on them. First off, The counters are in congestions, and I am having some trouble figuring out their trend. Furthermore, the only one with clearer indication is Nikkei. Nevertheless, I have decided to up-date these counters in the coming week.

I then thought to myself, is there any counter that I have not touched for a long time? Going through my entries, seems like it has been quite a while since I last checked on FTSE and DAX. My last up-date on FTSE was Is Britain's economy in trouble? dated Oct 2022. DAX was seven longer in my entry DAX and FTSC dated entry in April 2022.

So FTSE and DAX it is for this week!

Fig 1. FTSE weekly chart

FTSE was on a gradual climb after its collapse in 2020 and I came to believe that it should be reversing downward in my earlier entry.

Apparently, FTSE is not ready to do so and shot upward with support of its Bollinger band. The alignment of moving averages seems to support the continuation. The earlier congestion happened after FTSE reaching its first resistance zone between 6,521 to 7,138. 

It is now testing the previous high with its closing still remains below the last high mark of 7,903. There is a possibility of pull back before new height can be achieved.

The congestion created an additional pattern suitable for projection measurement, leading to next resistance level of between 8,043 to 8,869.

After it began to climb, its formation leads to a minor read with resistance between 7,855 to 8,196. 

FTSE has actually crossed level of 7,855 with minor congestion before its next climb. This gives addition new resistance level of 8,060 to 8,278.

While being able to derive many resistances, I noted that there is no alignment between them, giving me the impression that these levels may not be strong enough to stop its climb.

Of all the resistance levels, 8,043 and 8,060 are very close and it is a possibility that there could be a reversal at this point. 

Fig 2. DAX weekly chart

DAX is was stronger than FTSE, achieving new peak of 16,290 in November 2021 after the plunge in 2020. This was followed by a retracement of 50% to a low of 12,414 before resuming its climb.

At present, it has broken through a series of moving averages, retested these resistances turned support level. before continuation upward. The most pressing issue for DAX now is to break through its peak of 16,290. At present moment, it seems that DAX has the momentum to do so.

Utilizing its major move, the projection indicates resistances between 16,824 to 19,892. At the same time, it's uptrend behavior also provide indication of more minor resistance level of between 15,529 to 16,604. Lastly, it is latest climb, the resistance between 15,819 to 16,384.