Levels to watch: FTSE, DAX and Dow

Greek leaks have sent markets higher again this morning, despite the apparent failure of last night’s Eurogroup meeting. Reports of a ceasefire agreement for Ukraine has also given a boost to risk appetite.

Data on a screen
Source: Bloomberg

You might have been forgiven for expecting a market drop this morning, given that there was no agreement from eurozone finance ministers on the Greek situation. However it seems hope springs eternal, with the next meeting on Monday offering another point at which an agreement can be struck.

Sweden has also cut rates to negative, joining the central bank easing party, while signs of a potential ceasefire agreement have reassured worried markets about the conflict in east Ukraine.

FTSE's 100-point range drops to 60

The index continues to find support around 6780, close to the 20-day moving average, combined with buyers entering on any dip towards 6800.

However until we have a clear breakout to the upside beyond 6900 it seems hard to imagine a sustained rally in this index.

Over the last three days the 100-point range of February has narrowed to a 60 point range, with gains running into resistance around 6860 even as buyers hold up the 6800 end.

DAX finds support at 10,600

This morning’s action sees the DAX heading back to 10,900, targeting the 11,000 peak. The index has broken above the hourly trendline that capped gains since 3 February, moving back above the 200-hour MA. Short-term targets on the upside lie around 10,900 and then 10,970.

Any move lower would first come into contact with support at 10,700, where buyers entered during the course of yesterday’s session, and then 10,600 below it, the major support zone for the last two weeks.

Dow could drop to 17,400

The move higher in cash futures means the Dow Jones is once again attempting to build towards the all-time high. A daily close above 17,900 would set this up nicely.

A failure to hold above 17,900 would lead to another drop back in the direction of the 50-DMA, and then towards the 17,400 zone. 

IGA, may distribute information/research produced by its respective foreign marketing partners within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

This information/research prepared by IGA or IGA Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. 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. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

See important Research Disclaimer.