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Levels to watch: FTSE 100, DAX and Dow

Indices have started 2018 in the red, with European markets in particular under pressure again.

Chris Beauchamp ChrisB_IG
Chief Market Analyst, London

Publication date : 2018-01-02T09:28:42+0000

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FTSE 100 drops back from all-time high

Having hit new records at the end of 2017, the FTSE 100 is in pause mode as 2018 gets underway. The first area of support to watch for is 7600, and then down to 7550.

A continuation of the rally will require a move above the record high of 7705. The breakout to new highs should be seen as a validation of the strength of the move, with dip buyers likely to step in, to maintain upward momentum.

FTSE 100 chart

FTSE 100 chart

FTSE 100 chart

DAX takes an early tumble

Gains overnight have disappeared, with DAX testing and moving below the 12,844 level. The next area to watch is 12,678, with the 200-day simple moving average (SMA) at 12,707 also in view, for the first time since September.

Below 12,678, both12,387 and then 12,310 come into play. Meanwhile, a recovery back above 12,844 would see the index challenge 12,954, 13,095 and then 13,211.

Germany 30 chart

Germany 30 chart

Germany 30 chart

Dow drifts into the New Year

While Dow Jones did succeed in eking out a new all-time high at the end of 2017, it has essentially gone sideways since mid-December.

Above 24,899, the index is back in all-time high territory. The first area to watch for support is 24, and then down to 24,083.

Dow Jones chart

Dow Jones chart

Dow Jones chart

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