Levels to watch: FTSE, DAX and Dow

Tuesday has started quietly in indices, and for now sellers are finding it hard to muster any bearish momentum.

Source: Bloomberg

FTSE falters at 6400

A weak start yesterday was changed into a more impressive performance by the end of the session, as the index clawed back losses and once again moved back above the 6350 level that acted as support during the last few days of October.

However, gains yesterday stalled at 6400 and so far the index is unable to move beyond this. Any firm move through 6400 would target the 6450 and then 6490 area, which would put the index back on course towards the 200-day SMA (currently 6669).

If the sellers can put the index back below 6350 we may see bearish momentum revive, with a downward move to 6225 still possible.

DAX marches on towards 11,000

The October rally in the DAX entered a new month yesterday, with the index pushing its way through the highs seen at the end of last month.

While the rally looks a little over-extended, it still seems that dips are more likely to be buying opportunities. Only a move back below 10,750, yesterday’s low, would really suggest that the rally has run its course.

A close above 11,000 will confirm that bullish momentum is still intact, with a further target on the upside around 11,332. 

Dow still strong

US markets held up well yesterday, continuing their good October run into November. So far it has proven dangerous to try and pick a top in this rally, so we look for a continued move beyond 17,860, which would then clear the way towards 18,134.

Yesterday’s low of 17,600 should continue to act as support, but if it is broken then we look to 17,200, the low from 22 October for the Dow Jones

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.