Levels to watch: FTSE, DAX and Dow

Indices are recovering, thanks to a better finish for US markets.

Data chart
Source: Bloomberg

Can the FTSE climb above 6300?
Yesterday saw the index move and close below the 6300 level, although the crucial 6250 area remains as support. Traders must now wait to see if the price can get back above 6300, or whether it is forming another lower high as part of the current downtrend. Any move through 6250 still suggests at least a move to 6204 and then 6161. 

DAX unable to break above resistance at 10,900
For the DAX, moves through 10,800 continue to be met by more buying, as we saw yesterday, but so far the price is unable to push above resistance around 10,900. Any bounce is likely to be constrained by the long-term downtrend line off the all-time highs of April; this contained bullish momentum in July, August and now this week.

Until we see a daily close below 10,800 the sellers will have to be patient, but such a development would ignite a move to 10,600 and possibly much lower.

Dow recovery leads to bearish momentum
A recovery last night indicates that 17,650 is the area to watch for bearish momentum for the time being, leaving this index in consolidation mode.  

Unlike other indices, there is plenty of possible support for the Dow Jones, with moves back towards 17,650, 17,600 and 17,550 all likely to see buyers come back in. Upside targets lie around 17,900 and then on to the November high around 17,980.

This information has been prepared by IG, a trading name of IG Markets 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.

Find articles by analysts