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

Levels to watch: FTSE, DAX and Dow

After overnight gains, the indices are turning lower. However, that downside could simply provide better buying opportunities.

City of London
Source: Bloomberg

FTSE fleetingly breaks resistance

The FTSE broke through both trendline and horizontal resistance this morning, with a sharp spike above the key swing high of 7448.

Given that the next move was likely to be dictated by the break above 7448 or below 7382, this could give us a clue of where the breakout will eventually come. However, it makes sense to wait for an hourly close through one of those levels to guide our view.

FTSE chart

DAX turning lower once more

The DAX appears to be turning lower following a retracement into the 61.8% level. Given the recent short-term downtrend, we could see another leg lower from here.

However, for a bearish wider view to come into play, we would need to break below 12,490. A break through 12,842 would negate this short-term bearish trend.

DAX chart

Dow moves into key resistance

The Dow Jones is starting to weaken after an almighty rally into the crucial 21,503 mark.

That points towards the recent weakness as largely being over, and as such any pullback we see from here would be perceived as a buying opportunity, as long as it doesn’t break back below 21,307.

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.