Levels to watch: FTSE, DAX and Dow

The gains of Monday remain intact, even if markets are becoming increasingly nervous as the UK’s referendum approaches.

Data on screen
Source: Bloomberg

FTSE 100

With time ticking down until the EU referendum on Thursday, it is not surprising to see the index stalling just below 6250. The rally is still intact, and indeed notched up a decent move yesterday, so for the time being we may see hesitancy creep in.

Looking to the longer-term a break above 6300 targets the April high around 6400. A vote to leave the EU should see significant moves lower, with a break below 6000 and then last week’s low around 5900 opening the way to 5800 and then 5600.


Eurozone markets continue to enjoy gains, with little sign of weakness thus far. A continuation of the current rally heads towards 10,300 and then 10,500, which would then bring the price into contact with the longer-term downtrend.

We would still look for opportunities to buy on the dips, as and when they occur, with a turn towards bearish likely needing a drop back below 9900 for the DAX.


Although yesterday’s session failed to push back to the highs seen on Monday, overall the index remains in a general trend higher, both for the short-term and since the February lows. A move back to 18,000 would clear the way to the highs seen in February around 18,200.

A push on through 17,900 today would indicate the consolidation from Monday’s gap higher is complete. It would take a move back below 17,600 to negate the expectation of further gains.

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