Levels to watch: FTSE 100 and Dow
Both US and European markets are trying to find their feet amid recent declines, yet with key resistance levels up ahead we haven’t seen a bullish resurgence signal yet.
FTSE 100 turning higher once more after volatile evening
The FTSE 100 managed to rally back into the 6760 resistance level last night, following on from yet another bearish turn off that same region of resistance.
However, while we keep seeing the 6760 region provide resistance to subdue any upside momentum, the rising lows in play are starting to heighten the chances of a bullish breakthrough before long. With that in mind, watch for whether the index can break through the 6760 mark as a signal of whether we are going to see further upside or not for the near term. However, beyond that we would need a break through 6910 to provide a wider bullish outlook.
Dow consolidating after wedge breakdown
The Dow Jones has sold off through the bottom of a rising wedge, providing a sign of potential bearish price action to come. Yesterday’s subsequent rally back into the previous peak of 23,442 need not be a worry for that bearish signal, yet the subsequent inability to break below the 22,813 mark would.
With the price currently consolidating around that area, a break below the 22,813 level would provide greater confidence that a bearish phase is going to take shape. Alternately, a rally through the 23,442 peak would point towards another bullish surge coming into play.
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.
See an opportunity to trade?
Go long or short on more than 17,000 markets with IG.
Trade CFDs on our award-winning platform, with low spreads on indices, shares, commodities and more.
Live prices on most popular markets