Levels to watch: FTSE, DAX and Dow

OPEC-fueled gains calm down somewhat for indices. However, are we going to see a pullback, or is this rally set to continue?

US traders
Source: Bloomberg

FTSE 100 rallies after OPEC deal

Yesterday's deal to cut production among OPEC members provided the FTSE with a boost, bringing price back into a major resistance zone. This zone, consisting of the three market tops over the past two months, spans from 6932 to 6955.

Given the previous reversals at this region, the reaction from here will be key. As such, a break and hourly close above 6955 would provide us with a bullish continuation signal. An alternation — watch out on the intraday charts for a potential reversal lower.

FTSE 100

DAX rallies into wedge apex

The DAX has seen significant upside overnight, yet with price tightening there is a clear rising wedge pattern in play. This wedge points towards a potential break lower, if only for a short-term retracement of the recent gains.

Nevertheless, we are clearly trending higher on an intraday basis and thus we would need to see an hourly close below 10,499 to point towards the possibility of a deeper move lower.

Until that happens, the uptrend remains intact and further gains are certainly a possibility.

DAX

Dow seeks further gains

The Dow Jones is breaking higher following a retracement this morning. Price action has clearly slowed since the sharp appreciation yesterday, however as long as we continue to see higher highs and higher lows, a bullish outlook remains in play.

For now, as long as price remains above 18,319, further gains look likely.

Dow Jones

Denna information har sammanställts av IG, ett handelsnamn för IG Markets Limited. Utöver friskrivningen nedan innehåller materialet på denna sida inte ett fastställande av våra handelspriser, eller ett erbjudande om en transaktion i ett finansiellt instrument. IG accepterar inget ansvar för eventuella åtgärder som görs eller inte görs baserat på detta material eller för de följder detta kan få. Inga garantier ges för riktigheten eller fullständigheten av denna information. Någon person som agerar på informationen gör det således på egen risk. Materialet tar inte hänsyn till specifika placeringsmål, ekonomiska situationer och behov av någon specifik person som får ta del av detta. Det har inte upprättats i enlighet med rättsliga krav som ställs för att främja oberoende investeringsanalyser utan skall betraktas som marknadsföringsmaterial.