Levels to watch: FTSE 100, DAX and Dow

Stocks are on the rise following a dovish appearance from the Fed, with the FTSE 100, DAX and Dow all reaching crucial areas of resistance after recent gains.

FTSE 100 rallies back into crucial Fibonacci resistance

The FTSE 100 has been rallying sharply off the back of yesterday’s Federal Reserve (Fed) meeting, with the index heading back into the 76.4% resistance for the third time.

That 7002 level is going to be key in determining the outlook for the day, with a rally through it pointing towards a potential move into the crucial 7146 resistance level. Alternately, should it hold, that 7002 level could be the beginning of another move lower for the index.

FTSE 100 chart

FTSE 100 chart

DAX continues to trend higher

The DAX has once again found support to provide a new higher low on an intraday basis, with the index trading around the peaks seen over the past week.

The break below trendline support yesterday pointed towards a potential breakdown for the index, yet until we see a lower low, further upside remains a distinct possibility.

DAX chart

DAX chart

Dow pushes into Fibonacci and SMA resistance

The Dow Jones has been pushing higher over the start of 2019, with the price now trading around the 76.4% retracement and 200-day simple moving average (SMA).

The ability to push through this region of resistance is key to determining whether we push upwards from here. Ultimately we need to break through 26071 to move out of the wider bearish trend, yet a rally through this area of resistance certainly has bullish connotations for the short term.

Dow Jones chart

Dow Jones chart


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.

Take a position on indices

Deal on the world’s major stock indices today.

  • Trade the lowest Wall Street spreads on the market
  • 1-point spread on the FTSE 100 and Germany 30
  • The only provider to offer 24-hour pricing

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
Sell
Buy
Change
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Sell
Buy
Change
Sell
Buy
Change
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Friday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.

All trading involves risk and losses can exceed deposits. Trading CFDs may not be suitable for everyone so please ensure that you fully understand the risks involved. All trading involves risk and losses can exceed deposits.