Levels to watch: FTSE, DAX and Dow

Buyers are returning to equities, with the FTSE 100 looking strong and US markets buoyed by a decent earnings season thus far.

Chris Beauchamp ChrisB_IG
Market Analyst, London

2016-10-18T09:12:26+0100

Traders in NYSE stock exchange

Source: Bloomberg

FTSE seeks to break Friday’s high

As on Friday, the index bounced yesterday at 6940. This clear indication of support has allowed the index to rally, but it now needs to break Friday’s high at 7050, to establish a new high and create the conditions for a potential uptrend.

If we do move on through 7050 then we would look towards the peak at 7130. A fall today would test 6940 and then potentially head on towards 6800.

FTSE 100 price chart

FTSE 100 price chart

FTSE 100 price chart

DAX buyers help the index recover

Buyers have stepped in here and the index has recovered well from last Thursday’s lows. Indeed, we could see yesterday’s dip to just below 10,500 as a new higher low. Now if the index can push on through Friday’s high of 10,617, then we would have a new higher high as well.

As before, the bulls need to get the index through the 10,650/10,700 range that stalled progress earlier in October.

DAX price chart

DAX price chart

DAX price chart

Dow aims to move higher

US markets stabilised last night, and the Dow Jones managed to hold above 18,050. Now it needs to push on through 18,250, the Friday peak, and then will target the 50-day simple moving average at 18,333.

As long as it holds above 18,050 then a new uptrend may well be in place, but a drop through 18,050 would head towards last Thursday’s low at 17,959.

Dow Jones price chart

Dow Jones price chart

Dow Jones price chart

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