Levels to watch: FTSE 100, DAX and Dow
The markets are moving into a more bullish phase, with the US leading the way. As the FTSE 100 and DAX approach key resistance levels, we are close to a key breakout signal across the board.
FTSE 100 continues to push higher after rally through the 76.4% Fibonacci level
The FTSE 100 has rallied through the final Fibonacci level, with the index closing in on the notable 6910 resistance level. A break above there would point towards a continuation of this recent bullish sentiment, negating the wider creation of lower highs.
However, with a descending trendline coming into play around that same resistance level, there is also a good chance that this market will turn lower from that confluence of resistance. As such, watch out for how the FTSE 100 reacts to that area for a signal of where we go from here.
DAX heading higher once again
The DAX drifted lower yesterday, following gains throughout the first trading days of 2019. However, with the price having already broken through the 76.4% retracement, it looks increasingly likely that we will push through the key 10,987 mark.
Should that occur, it would be the first higher high in eight months. As such, whether we break through that level will be a key determinant of market direction for the near term.
Dow showing signs of strength after recent declines
The Dow Jones is continuing to gain ground, as it recovers from its recent declines.
The declines associated with the break below 23,112 failed to hold for much time, with the index instead now having exhibited higher highs and higher lows. As such, further upside looks likely, with a fall below 22,587 required to negate the current bullish outlook.
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.
'Gain an edge in trading' conference
15 October, the Ritz-Carlton DIFC
Learn different strategies, powerful techniques and how to trade the latest financial trends from our expert
Live prices on most popular markets