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CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

DAX, FTSE prices muted in narrow range of technical support and resistance

Dax 40 trades flat with psychological support and resistance limiting the imminent move and FTSE 100 bulls and bears struggle to gain traction as bullish momentum stalls.

Source: Bloomberg

Dax futures have recently struggled to maintain the bullish momentum responsible driving the major European index above 15,000. While the FTSE 100 experienced a pullback from its highest level since 2018, Dow futures have continued to threaten resistance.

As a weaker US dollar and rate expectations drive the global equities, rising volatility, sentiment and technical levels could provide an additional catalyst for price action. With fundamentals largely priced in, the below charts illustrate the manner in which historical moves could continue to assist in guiding prices.

DAX 40 technical analysis

For the German Dax, the 78.6% Fibonacci retracement from the 2022 that limited gains throughout last year has remained as key resistance. Although the same levels discussed last week currently remain intact, prices have fallen into a zone of confluency that could influence both the short and longer-term move.

After reaching a high of 15,332 last Tuesday on the 17th of Jan, failure to gain traction above this level forced Dax futures lower. However, with the psychological level of 15,000 forming as support, a temporary retest of 14,961 was met with swift retaliation from bulls. Taking a closer look at today’s price action, the current daily range between 15,071 and 15,209 has resulted in lackluster momentum.

Dax 40 daily chart

Source: TradingView
Source: TradingView

UK FTSE 100 technical analysis

With the FTSE 100 trading marginally higher, materials and consumer staples have gained 0.64% and 0.58% respectively while utilities lead losses with a 1.00% decline.

Source: Refinitiv

FTSE 100 daily chart

Source: TradingView

This information has been prepared by DailyFX, the partner site of IG offering leading forex news and analysis. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.


This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

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