FTSE 100, DAX and Dow rise, yet profit-taking remains a concern

FTSE 100, DAX and Dow surge higher, yet there is a chance of profit-taking ahead of the US jobs report.

FTSE 100 trades back at key resistance

The FTSE 100 has continued its ascent, as risk-on sentiment helps drive global stock markets higher. For the FTSE that means a move back into the crucial 7636 resistance level, which will be the level to watch today.

Should we break through that level, it would point towards a move back into trendline resistance and the 7680 peak. However, the importance of this level means that we could see resistance hold out for now and a move lower for the FTSE.

DAX consolidating after recent breakout

The DAX has been treading water overnight, following on from a break through the crucial 13,472 resistance level. That leaves us within touching distance of the 13,601 record high.

The key to further gains is to remain above that 13,472 support level. Watch for whether we see a break below 80 on the stochastic as a possible sign that momentum could be reversing.

Dow Jones hits fresh highs following breakout

The Dow Jones has managed to break through the 28,958 resistance level, bringing about a fresh record high for the index.

We are starting to see some weakness come into play this morning, and there will be questions over whether we will see some profit-taking ahead of today’s US jobs report. Keep an eye out for whether we see a break below the previous resistance, with support now at 28,958. Should that break, we could see some short-term downside as traders exit their positions ahead of the event and weekend risk.


This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material 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. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research 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.

Take a position on indices

Deal on the world’s major stock indices today.

  • Trade the lowest Wall Street spreads on the market
  • 1-point spread on the FTSE 100 and Germany 30
  • The only provider to offer 24-hour pricing

Live prices on most popular markets

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

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.