Charting indices: will resistance halt indices' bull run?

After five really strong days, IG analyst Josh Mahony is getting more and more cautious about trading the FTSE100, CAC 40 and Dow. 

Even though the FTSE100 has broken the 6,298 resistance level, Josh thinks a pullback is very likely and considers 6,429 as the next level of resistance. On the CAC 40 we are at a key level: since June, the 4,712-4,732 area has been an alternative area of support and resistance, and given the recent sharp rise of the index we are more likely to see some sort of correction around this level. We have a similar story with the Dow. The 16,863 resistance level has been broken, and focus shifts to whether or not it stays above this level in today’s session.

Trade now

Live FTSE 100 | DAX | Dow Jones | CAC 40 prices

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