Over 40 years’ heritage
185,800 clients worldwide
Over 15,000 markets

Levels to watch: FTSE, DAX and Dow

European markets appear to be on the rise as they attempt to regain ground from their US counterparts. Meanwhile, the Dow continues its somewhat uninspiring run of form.

Trader
Source: Bloomberg

FTSE
The FTSE 100 is trading within an ascending triangle formation, which points towards a likely break higher in the near future. We have a clear uptrend in play, with the creation of higher lows alongside flat lining tops.

As such, an hourly close above 6744 would point to another leg higher for the index, where 6808 and 6875 represent the next key resistance levels.

Alternately, an hourly close below 6606 would point towards a more bearish outlook, with 6500 the next key support level.

FTSE 100 daily chart

DAX
The DAX has managed to break briefly through Monday’s high of 10,170, with price subsequently moving lower. The key level to watch today is 10,121, which has been providing support overnight.

This level has been a reliable form of support and resistance throughout 2016. As such, the ability to maintain price above 10,121 will be crucial to the fortunes of the DAX today.

DAX daily chart

Dow
While the Dow has been grabbing the headlines after continued gains, those gains have been uninspiring in size, with the index largely eking out gains rather than moving in a convincing manner.

Nevertheless, the move lower we are currently seeing is likely to resolve in another move higher to conform to the recent trend. That is unless we see an hourly close below 18,554 support, which was established yesterday.

Given the fact that we are reaching all-time highs, resistance levels are hard to come by beyond yesterday’s high of 18,637.

Dow daily chart

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