FTSE 100, DAX and Dow rally into key resistance
FTSE 100, DAX and Dow on the rise, as the markets reach key hurdles in their bid to break higher.
FTSE 100 rallies back into resistance zone
The FTSE 100 has managed to regain ground since Friday's losses, with the index rising back towards a zone of resistance. That 6300-6320 region has capped price action over the past week, bringing a consolidation phase after the mid-June surge seen from the 15 June lows.
With the stochastic oscillator tightening into a symmetrical triangle alongside this consolidation in the price action, we are awaiting the next breakout from this zone. With that in mind, the bullish continuation signal comes with a break through the 6320 peak from Friday. Until then, be aware that the current rally is at risk of another turn lower to continue this consolidation phase.
DAX rallies into key breakout level
The DAX has similarly rallied into key level this morning, with the rise into 12,485 bringing about a potential bullish breakout. Coming off the back of a recent period of consolidation, the gains we are seeing this morning highlight a potential next leg higher if this level can be overcome.
With the stochastic into overbought, there is a chance we could roll over from this level. Thus, it makes sense to look for a closed candle through 12,485 to bring about a bullish continuation signal from here.
Dow Jones pushes through Fibonacci resistance
The Dow Jones has also been on the rise this morning, despite sharp volatility overnight. The recent rise has taken us beyond the 76.4% Fibonacci retracement level at 26,222, with the price rising towards the upper echelons of a descending standard deviation channel.
Ultimately, we need to see the 26,448 level broken to bring about a fresh bullish continuation signal. Until then, we are at a key hurdle here that needs to be overcome if we are to see another bullish breakout phase.
This information has been prepared by IG, a trading name of IG Australia Pty Ltd. 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.
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 40
- The only provider to offer 24-hour pricing
Live prices on most popular markets