Levels to watch: FTSE, DAX and Dow

Apple’s standout quarter has failed to inspire much excitement in markets this morning, with markets suffering from a dose of profit taking, especially on the continent. 

A man looking at data
Source: Bloomberg

FTSE remains rangebound

The see-saw battle between 7000 and 7100 continues, and so until we have a resolution one way or the other there are few compelling reasons to take much of an interest. Bulls can take some small comfort from the fact that the index continues to hover in the top end of this range, but this is of little help. We continue to watch and wait for a breakout from the current range.

DAX eyes close above 12,000

The problem for the DAX is that the descending trendline off the all-time highs is still making life difficult with regards to any upside breakout. However, both the daily relative strength index (RSI) and stochastics have moved higher, so while we are seeing some skittishness the bulls might arguably have control.

The price sits just above the 14-day exponential moving average (EMA) at 11,970, and adventurous bulls continue to step in around the 50-period EMA on the four-hour chart (11,955). The bounce off the 50-day moving average (11,779) remains intact, but the index must close above 12,000 to confirm that there is more to come here.

Dow slipping towards 17,973

Once again 18,100 was too much for the Dow Jones and the index is falling towards the 50-day simple moving average (SMA) (17,973) once again. Bulls should be troubled by the downturn in the Russell 2000, which often points the way for the larger indices.

A failure to hold support at the 50-day SMA would signal another probe of the 100-day SMA at 17,824, while the rising trendline off the April lows looks unsteady at present. A close above 18,100 would signal that the bulls have regained control and open the way for another run at all-time highs.

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. See full non-independent research disclaimer and quarterly summary.

CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen. 79% van de retailbeleggers lijdt verlies op de handel in CFD’s met deze aanbieder.
Het is belangrijk dat u goed begrijpt hoe CFD's werken en dat u nagaat of u zich het hoge risico op verlies kunt permitteren.
CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen.