Levels to watch: FTSE and DAX

With both the FTSE and DAX at critical resistance levels, are we seeing both indices turn lower or is this just a pause before we move higher once more?

Traders on a stock exchange
Source: Bloomberg

FTSE pulls back from record highs

The FTSE has pulled back following a rally towards the 7127 all-time high. This morning’s high largely matched the high of yesterday, which, given the proximity to the 7127 mark, provides a warning sign that we could turn lower.

However, for now the uptrend remains intact and unless we break below 7091, a bullish outlook remains in play. That said, perhaps it is prudent to await a break and closed candle above 7127 to gain confidence that a breakout is occurring.

DAX continues to show reversal threat

The DAX continues to show signs of weakness, as it oscillates around the crucial 11,434 level. The ability or inability to maintain price action above that level would have significant implications for the coming weeks and even months.

Signs are that we are at least struggling to overcome that level, and should we see the index break below 11,405, it could pave the way for a significant deterioration in the DAX. For now, we await the breakout above 11,484 or below 11,405 for a longer lasting directional bias. Until either happens, there is a clear range in play.

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.