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

Levels to watch: FTSE, DAX and Dow

US and UK markets continue to drift, but eurozone stocks look a little more vulnerable to further downside. 

German stock exchange
Source: Bloomberg

FTSE election-sensitive but still bullish

Bulls continue to hold the FTSE above the 7500 level, with the post-April trendline also coming into play. In case a bigger move lower starts, then 7450, 7408 and 7360 all stand as support lines.

With the election now almost upon us, we may see a further sideways drift until the result becomes known, but it would need a move below the 50-day simple moving average (SMA) at 7370 to really put a dent in the bullish trend. 

FTSE chart

DAX in consolidation

Eurozone stocks took a bit of a knock yesterday, but overall the DAX continues to sit in the middle of its consolidation period between 12,500 and the 12,900 area.

In the short term, the 12,660 area has acted as support, with a break through here likely to open the way to 12,500 and the 50-day SMA at 12,477.

DAX chart

Dow retracing slightly

The Dow Jones is nudging below the 21,171 level, a previous all-time high, and could now be set for a bigger move to 21,023.

It looks to be losing the rising trendline that has held since the May low, but we are still only 0.4% from Friday’s new all-time high. This looks more like a gentle retracement rather than anything else.

Dow Jones 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 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.