CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved.

FTSE 100, DAX and Dow rally ahead of ECB decision

FTSE 100, DAX, and Dow push onwards after a rally through key resistance level.

FTSE 100 rallies through resistance to bring bullish outlook

The FTSE 100 managed to rally through 7326 and 7350 resistance yesterday, bringing about a more positive outlook for the index.

The prior head and shoulders formation failed to really gain traction, with that total retracement amounting to a 38.2% move. With the price having broken through resistance since then, we are looking at further upside to building on the bullish break seen when we overcame the 7305 level at the start of the month. With that in mind, further upside is expected, where a pullback would be seen as a retracement to buy into unless we see the price fall below 7199.

DAX rally continues, with major resistance in sight

The DAX has enjoyed an incredible month, with the index rallying sharply in anticipation of a wide-ranging easing package from the ECB today.

Expect volatility as a result, with Mario Draghi likely to provide the directional bias in the afternoon. The recent break through 76.4% Fibonacci resistance highlights the potential for a breakout into a wider bullish picture, with a rise through 12,602 needed to bring about such a move. Conversely, a break back below 12,179 would signal the potential for a more bearish phase coming into play.

Dow rises into crucial resistance level

The Dow Jones is in a similar picture to the DAX, with the price having broken through Fibonacci resistance to rise towards a crucial breakout level (27,403).

A break through there would bring a clear wider bullish picture on the longer-term charts. With the price starting to ease back, there is a possibility of a retracement over the coming hours, yet any weakness would need to see a break below 26,714 to negate the current uptrend. Until that happens, further upside is expected before long. Bear in mind, expectations of the Federal Reserve (Fed) action will also be driven by the European Central Bank (ECB) action or inaction. Thus, keep a close eye out for the ECB meeting as both a provider of short-term volatility and future Fed expectations.


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. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer.

Seize your opportunity

Deal on the world’s stock indices today.

  • Trade on rising or falling markets
  • Get one-point spreads on the FTSE 100, 1.2 on the Germany 40, and 0.4 on the US 500
  • Unrivalled 24-hour pricing

See opportunity on an index?

Try a risk-free trade in your demo account, and see whether you’re on to something.

  • Log in to your demo
  • Try a risk-free trade
  • See whether your hunch pays off

See opportunity on an index?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Get spreads from one point on the FTSE 100, 1.2 on the Germany 40, and 0.4 on the US 500
  • Trade more 24-hour indices than any other provider
  • Analyse and deal seamlessly on smart, fast charts

See opportunity on an index?

Don’t miss your chance. Log in to take your position.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired
liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.