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

Levels to watch: FTSE, DAX and Dow

The FTSE is attempting to match the Dow, with post-BoE gains helping it along. However, the DAX continues to feel the ill-effects of a strengthening euro.

Market data
Source: Bloomberg

FTSE rallies into key resistance level  

The FTSE has pushing higher following yesterday’s Bank of England (BoE) meeting, with the price returning back towards the crucial 7487 mark. A break above there would provide a bullish outlook, meaning the weakness we have seen over the fortnight is simply a 76.4% retracement.

As such, watch out for a potential hourly close above 7487 as a strong bullish signal. Alternately, an inability to break through that level would point towards a possible retracement of yesterday’s sharp rally. 

FTSE chart

DAX continues to underperform

The DAX has been moving lower from the 76.4% retracement this week, with the downtrend of late being continued apace. A break below 12,086 would signal that this recent downtrend is set to continue.

A break back above the 12,305 would be the signal that we are looking likely to reverse out of this recent downtrend.

DAX chart

Dow shows no signs of slowing

The Dow Jones continues to push higher, as a weakening dollar and bullish earnings season help things along. The 50-hour simple moving average (SMA) has been providing good support, and thus watch out for that to hold once more should we pull back.

Essentially a bullish outlook remains in place, with an hourly close below 21,982 required to negate this bullish view.

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.