Levels to watch: FTSE, DAX and Nasdaq

Despite recent weakness, we are beginning to see signs that point towards a recovery of sorts for both European and US markets.

US trader
Source: Bloomberg

FTSE weakening from crucial resistance level

The FTSE rallied into the key 7555 resistance level yesterday, with the price turning lower as a result. The ability or inability to break through that key resistance level is going to be a major determinant of the price action as the week goes on.

While we can see that the price has broken through trendline support, the most important thing is whether we see an hourly close below 7479 or above 7555. The resolution of that current zone of trade is going to set the precedent going forward. 

FTSE chart

DAX pushing higher from trendline support

The DAX is trading within a triangle formation, with the price pushing higher from trendline support overnight. The key thing we need from here is an hourly close above 12,822, which would provide the bullish breakout signal we are looking for.

Conversely, an hourly close below 12,638 would provide a bearish outlook.

DAX chart

Nasdaq looks set for resurgence

The Nasdaq has been the talk of the town recently, with a sharp downturn bringing the price into the trendline and Fibonacci support area. While we have not seen the price hit the 76.4% retracement yet, there is good reason to believe we will see the index push higher once more before long.

The long lower shadows on the lowest candles show a clear rejection of those prices. Given the clear uptrend in place over recent years, this looks like another higher low being created. Thus, as long as we do not break below 5547, further upside is expected. Any further downside over the short term simply would provide us with a better price to get long.

Nasdaq chart

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.