Opgericht in 1974

Meer dan 195,000 cliënten wereldwijd

Toegang tot 15,000 markten

Levels to watch: FTSE, DAX and Dow

Indices consolidate and retrace following a major move higher this week. Considering the existence of a long weekend and Janet Yellen’s speech, we could see traders hold off. Nevertheless, the outlook remains bullish for now.

Joshua Mahony
Market Analyst, London

2016-05-27T10:01:22+0100

Data board

Source: Bloomberg

FTSE continues to consolidate after rally
The index has been trading largely sideways since breaking through the major 6237 resistance on Tuesday. Given that rally and the fact that we are only seeing a sideways range rather than any selling pressure, it seems likely we will break higher once more upon exiting this formation.

As such, it makes sense to either be long around the bottom of this pattern (6249 for example), or else await the breakout for above 6281 resistance. Above 6281, key resistance levels are around 6324 and 6337. Conversely, should we see a break below 6237, this could spark a major leg lower, with 6217 the next support level of note.

FTSE daily chart

FTSE daily chart

FTSE daily chart

DAX pulls back from trendline resistance
The index is turning lower this morning, following a move into a key trendline dating back to December 2015. Despite this, we have not seen any signs to say that this current rally is over and thus this move is viewed as a retracement of yesterday’s rally.

With that in mind, it is worth looking out for potential support around 10,233 (61.8%) and 10,211 (76.4%). The bullish outlook would be negated with an hourly close below 10,176.

DAX daily chart

DAX daily chart

DAX daily chart

Dow retracing after break out of downtrend
The index has been gradually moving lower over the past two days. Considering the break through 17,761 and the shallow nature of this pullback, another rally appears to be the likeliest event from here. There is a potential triangle pattern being formed, yet ultimately, we will await a break through 17,894 for a bullish signal, given that we have no Fibonacci retracement to look out for.

As such, a bullish view is in play, yet the entry to such a move is perhaps not as simple as some other markets. Key resistance is found at 17,894, 17,933 and 17,978. Meanwhile, the most notable support level to watch is 17,761.

Dow daily chart

Dow daily chart

Dow daily chart

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.

Find articles by analysts

Chris Beauchamp

London
Joshua Mahony

London
Salah-Eddine Bouhmidi

Düsseldorf

Een artikel zoeken

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. Professionele cliënten kunnen meer verliezen dan hun inleg. Iedere vorm van beleggen is risicovol.

De waarde van aandelen, ETF's en ETC's die via een aandelenrekening zijn gekocht, kan zowel stijgen als dalen. Dit betekent dat u minder terug kunt krijgen dan u heeft ingelegd. Prestaties in het verleden zijn geen garantie voor toekomstige resultaten.

CFD's en beleggen in aandelen wordt aangeboden door IG Markets Ltd. IG is een handelsnaam van IG Markets Ltd. Het geregistreerde adres is Cannon Bridge House, 25 Dowgate Hill, London, EC4R 2YA. IG Markets Ltd. is geautoriseerd en gereguleerd door de Britse FCA (nummer 195355).

De informatie op deze website is niet gericht aan inwoners van de Verenigde Staten of België en is niet bedoeld voor de verspreiding van, of gebruik door, een persoon in een land of jurisdictie waar zulke verspreiding of gebruik in strijd is met de lokale wet of regelgeving.

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.