Levels to watch: FTSE, DAX and Dow

European indices are recovering this morning, after a poor finish to last week.

City of London skyline
Source: Bloomberg

FTSE starts week positively

Despite a weak session on Friday the index showed no inclination to go near the 6000 level, bouncing higher and continuing these gains early on in Monday’s session. First intraday resistance is likely around 6103, followed on by 6221. Until the index gets back above 6221, we remain in a consolidation phase, with 6000 and then 5830 support on the downside. 

DAX eyes 10,193 after clearing 10,000

The DAX too has found the energy to move higher, putting itself back above the 10,000 level once again. Now we look to see if it can breach 10,193 and then move on towards 10,375. Much attention will be given to the ‘death cross’ on the daily chart, as the 50-day crosses below the 200-day, but so long as the index holds above the late-August lows I am still relatively optimistic about further gains. I would like to see the index get back above the July bottom around 10,685, but for the time the steep uptrend line off the August lows remains intact. 

Dow recovery supported by 16,000

A recovery is underway in US indices too, with futures still trading despite the US national holiday today. Once again 16,000 continues to act as the downside barrier, and so we look to see if the index can now move back towards 16,528 and then 16,673. 

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.