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

Levels to watch: FTSE, DAX and Dow

Gains proved fleeting yesterday, but support has held on the FTSE and Dow so we may see a fresh attempt to push higher.

Traders in the New York Stock Exchange
Source: Bloomberg

FTSE 100 back below 7200

What looked like a very bullish day yesterday turned sour in the afternoon, with the index unable to hold gains above 7200, and, indeed, 7200 itself. However, the 7160 was held yet again so, for now, the trend is still moving upwards.

Bulls need a daily close above 7200 and then above 7236, with further targets still at 7276 and 7348. A close below the rising 50-day simple moving average (7092) would be a real sign of a bigger drop.

FTSE 100 price chart

DAX holds on to key support

The DAX lost most of its gains yesterday, but continues to hold above key support around 11,400. A real move higher would only be seen with a close above the weekly pivot at 11,663. This would then open the way to 11,800 and 11,923.

Bears are likely to be disappointed unless we see a drop and close below 11,400.

DAX price chart

Dow Jones dips from record highs

Fresh record highs for the index yesterday were not met by further bullish momentum, with gains receding as the session ground on. However, the 20,050 area held as support, and we have seen more buying pressure develop.

The price now needs to move above 20,150 to maintain momentum. A close below 20,000 would likely be a bearish development, even if it resulted only in a move back to the low of the past week around 19,800. 

Dow Jones price 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