Levels to watch: FTSE, DAX and Dow

Indices refuse to move lower, and the apparent breakdown of the previously close correlation between equities and oil suggests we may see more gains. 

Data
Source: Bloomberg

FTSE 100 eyes 6000

The index showed a marked reluctance to go down yesterday, holding comfortably above the 50-hour simple moving average (5855) throughout the session.

Gains above 5940 should be expected if bullish momentum holds, with the real target still being the 50-day SMA at 5960 and then the 6000 area, which will coincide nicely with the top end of the current descending channel.

What has been missing thus far is a real dip, but this may occur if the index drops back towards 5750, providing another potential opportunity to get long ahead of options expiry on Friday. 

FTSE

DAX could see 9400

For now the rising hourly trendline is holding, and thus we look towards the overnight high at 9246 and then the area around 9300 as targets for the DAX.

Continued gains will put 9400 into focus, the area which marked key support in January. We would need to see a move back below 9000 to really suggest that the bounce has run its course.

DAX

Dow could find support at 16,027

The 16,242 level is the first area to watch for a break higher, marking the highs from yesterday’s session.

Any move above here targets 16,511 and then the 50-day SMA at 16,652. A move above the 50-day SMA would mark a significant departure for the index as we have not seen sustained price action above this indicator since the end of November 2015.

Any failure to hold gains today means we look to support around 16,027, and then below this down towards 15,800.

Dow

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.