Key index levels: technicals for FTSE, DAX and Dow

With sentiment generally strengthened by Alcoa's Q1 earnings release yesterday, we look at how three key indices are performing this morning.

Expectations were low for Alcoa earnings after the US closing bell last night. The better-than-expected earnings per share reading and upbeat outlook from the company still considered to be something of a bellwether for economic growth, has helped to embolden sentiment this morning.        

FTSE fails to break past 200-DMA

A bounce back on the FTSE this morning has yet again failed to break past the 6623 level and the 200-day moving average. The bullish candle from yesterday shows how much support has been gleaned at the 6550 level, and as long as this holds we may see an attack on the pivotal area of 6680. Above that is the 6725 level, which may create a barrier for any major bullishness.

DAX could attempt break higher

Price action is finding a cradle from the 50-DMA. A break of 9635 is required if the trendline resistance is to be eradicated and fresh attempts at the all-time highs made. The next target above the 9505 level is the 100-hour MA at 9567, then the 9580 zone. The rising relative strength index indicates the momentum may be here to achieve this.

Failure to stay above the 9500 marker could see the DAX return to 9390.

DOW anchored to 50-DMA

Anchored to the 50-DMA currently, the Dow Jones needs to break above the 16,355 level if the fallout from last Friday’s selloff is to be neutralised. On the Intraday, the 50-hour MA is standing in the way and the flat RSI indicates little momentum to even break the 16,300 level. Any move below yesterday’s lows takes us back towards 16,040.

The information 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 Bank S.A. 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 and as such is considered to be a marketing communication.

Find articles by analysts