Levels to watch: FTSE, DAX and Dow

Gains petered out for indices last week, but with Thanksgiving looming we may see the bulls recover their momentum.

Data reflected in a persons glasses
Source: Bloomberg

FTSE fails to hold gains

The index proved unable to hold on to gains above 6330 last week, so this is the area that buyers need to recover. At present the index is now looking as if it will target the 6230 area, with some support possible around the 50-day simple moving average (6266). If the price action becomes particularly bearish we could see a move back to the bottom end of the current rising channel, which we last touched just a week ago. A daily close above 6330 would target 6406 and then 6450. 

DAX below 11,100

The 11,150 level proved to be the limit of the bullish advance last week, so buyers will be watching this area for any momentum beyond this point. The price has moved below the 200-day SMA at 11,100, and so the next area of support would be around 10,980 and then 10,920. A move to the latter would put the DAX back below the long-term downtrend line from the April highs. The situation here looks bearish unless we see a close above 11,170. 

Dow could fall to 17,740

While Europe stumbles, US indices still seem robust, even if they have given back some of Friday’s gains. A move down towards 17,740 (towards the lows of Thursday) would put a bearish aspect on the index, and open the way to 17,580 and the 200-day SMA. A move back through 17,860 would head towards the November high around 18,000. 

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.