FTSE 100, DAX and Dow rally towards key resistance
FTSE 100, DAX and Dow on the rise, yet key resistance levels lie ahead for this latest bullish surge.
FTSE 100 rises towards key resistance level
The FTSE 100 managed to rise beyond the 76.4% Fibonacci level yesterday, with the index closing in on the crucial 5944 level. The rise through 5849 highlights the possibility of further upside, with higher lows continuing to play out.
Ultimately, we will need to see the price break out of that pattern to start asking questions about the longevity of this rally. However, until then it looks likely we will continue this short-term rise given the break through 5849 and respect on trendline support. Additionally, we will ultimately need to see a break through 5944 to break from this consolidation phase.
DAX rises into key resistance zone
The DAX has also gained ground, with the index moving into trendline resistance. With higher lows and lower highs currently in play, the index is trading within a symmetrical triangle formation.
Given the existence of the trendline and horizontal (10,773 and 10,825) resistance levels, this current bullish move could come under pressure before long. Ultimately, we need to see a break through 10,825 to bring about a bullish continuation signal. Until then, there is a good chance that the current upside is limited as the price rolls over to continue this consolidation phase.
Dow Jones rises beyond Fibonacci resistance
The Dow has managed to break through the 76.4% Fibonacci resistance level overnight, with the price easing back a little since. That break points towards a potential bullish break through 24,447.
However, given the break below 23,088 last week, there is also still a chance we are looking at a retracement until the price rolls over once more. As such, it makes sense to either await a bullish break through 24,447, or a bearish intraday reversal signal such as a break below yesterday’s swing low of 23,842.
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.
Seize your opportunity
Deal on the world’s stock indices today.
- Trade on rising or falling markets
- Get one-point spreads on the FTSE 100
- Unrivalled 24-hour pricing
See opportunity on an index?
Try a risk-free trade in your demo account, and see whether you’re on to something.
- Log in to your demo
- Try a risk-free trade
- See whether your hunch pays off
See opportunity on an index?
Don’t miss your chance – upgrade to a live account to take advantage.
- Get spreads from one point on the FTSE 100
- Trade more 24-hour indices than any other provider
- Analyse and deal seamlessly on smart, fast charts
See opportunity on an index?
Don’t miss your chance. Log in to take your position.
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
