Levels to watch: FTSE 100, DAX and Dow
Bearish questions arising after period of upside for European and US stock markets.
FTSE 100 rallying through trendline resistance
The FTSE 100 has been regaining ground overnight, with the index hoping to overcome yesterday’s peak of 7167. Given the fall below 7116, there is a risk that we could see this rally fall short.
With the price rallying through trendline resistance, we are passing through the first hurdle before overcoming that 7167 level. The other is the 76.4% retracement, which is currently being challenged. Watch out for whether the index can push through this resistance zone, with a subsequent move above 7167 required to provide greater confidence of a bullish continuation.
DAX turning higher after brief pullback
The DAX has been falling back overnight, with the index having rallied into the notable 11,691 resistance level.
Despite rising within a bearish wedge formation, it looks likely that we are looking at the start of another leg higher. A rise through the 11,682 peak seems likely, with such move maintaining the recent uptrend. A bullish outlook remains unless we see a break below 11,401.
Dow raises questions at key resistance level
The Dow Jones has started to show tentative signs of weakness from a crucial area of resistance, with the fall below 25,763 raising questions given the move into the 26,277 peak from November 2018.
This could be the beginning of a bearish period, with a break through 26,277 required to maintain the bullish trend.
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