Skip to content

We want to clarify that IG International does not have an official Line account at this time. We have not established any official presence on Line messaging platform. Therefore, any accounts claiming to represent IG International on Line are unauthorized and should be considered as fake.
CFDs are complex instruments. 72% of retail client accounts lose money when trading CFDs, with this investment provider. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money.
CFDs are complex instruments. 72% of retail client accounts lose money when trading CFDs, with this investment provider. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money.

Risk-on sentiment is back in play, pushing indices higher

Bullish technical outlook on FTSE 100, DAX 40 and Dow, now that bullish reversals signals have been triggered.

Video poster image

​FTSE 100 tries to overcome its early May high

The FTSE 100 is trying to overcome its early May high at 7,621 and reach the late April high at 7,657 amid global risk-on sentiment due to hopes that the US Federal Reserve (Fed) may not need to tighten as much as previously feared following a further slowdown in core US PCE inflation and as China’s reopening plans spurred a rally.

A rise and daily chart close above the 7,657 21 April high would engage resistance seen between the 7,657 to 7,690 January 2020, February, and April 2021 highs which is expected to thwart the first attempt of a breakthrough during a curtailed week as the UK celebrates the Queen’s Platinum Jubilee with a long Bank Holiday weekend which begins on Thursday.

Above the 7,690 January 2020 peak lies the July 2019 high at 7,730.

Minor support is seen at the 7,545 mid-May high.

FTSE 100 chart Source: ProRealTime

DAX 40 trades near two-month highs

The recovery rally in the DAX 40 has taken it to levels last seen in early April, to above the 14,599 21 April high, in low volume, risk-on trading as many Europeans made a long weekend out of Thursday’s Ascension Day holiday.

The major 14,840 to 14,927 resistance zone is thus back in focus. It began as a key support area, made up of the May 2021 to February 2022 lows, before being slipped through when, due to inverse polarity, it changed to a major resistance zone and thwarted the steep March rally which provoked the sell-off to the May trough.

From there the current rally seems to be taking the DAX 40 back towards the 14,840 to 14,927 key resistance zone which is expected to cap when first tested.

Above it the 200-day simple moving average (SMA) can be seen at 15,096. Good support can now be found at previous resistance, namely between the early and mid-May highs at 14,315 to 14,282.

DAX 40 chart Source: ProRealTime

Dow finished the week on a positive note after a five-week slump

The Dow Jones Industrial Average’s recovery rally from its current May low at 30,637 low has taken it to above its two-month downtrend line and, more importantly, its mid-May high at 32,756 on Friday, thus leading to the first bullish week after five consecutive weeks of lower levels being seen.

The rally came amid risk-on sentiment as investors hope that the Fed may not need to tighten as aggressively as had previously been feared and on the back of a further slowdown in core US PCE inflation.

With today’s US cash markets being shut in the US due to Memorial Day, the index is looking for further gains on its electronic overnight session with the 55-day SMA at 33,624 being in focus, now that a bullish reversal has been formed after a bottoming formation.

Key resistance is made up of the 34,181 to 34,059 area which consists of the late February and early March as well as the early May highs. Support is now seen at the 32,756 mid-May high.

DJIA chart Source: ProRealTime

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 40
  • The only provider to offer 24-hour pricing
Find out more

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

You might be interested in…

<h3>How much does trading cost?</h3>
<h3>Find out about IG</h3>
<h3>Plan your trading</h3>

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.