Levels to watch: FTSE, DAX and Dow

Indices are fighting to gain ground this morning, after a bearish session yesterday. 

Data
Source: Bloomberg

FTSE 100 eyes 6200

Yesterday’s sharp drop took the index to its lowest level since mid-November. A small bounce overnight puts the index back on course for resistance around 6200, and if this is broken we can look towards targets at 6200 and then 6220.

Further downward moves will hit the bottom end of the daily rising channel around 6095, at which point we will see whether the index can repeat the feat of 16 November, when it bounced strongly.

If the bottom end of the channel is broken then support at 5960 will become the next target, followed by 5900.

DAX could find support at 10,500

In recent sessions dips towards 10,600 have brought out buyers, with 10,650 acting as the chief nexus of support.

Until this is broken we may not see further significant downside. However, buyers need to push rapidly back above 10,745 and then 10,850 to confirm that a bounce is in progress.

Further downward support for the DAX lies around 10,557 and then 10,500.

Dow could see resistance at 17.728

The 17,500 level continues to act as support here for the Dow Jones, preventing further drops yesterday as it did on 3-4 November. A break below this level would target 17,422 and then 17,200.

A bounce today would first test the descending trendline around 17,650 tested and then see resistance at 17,728 and then 17,875 come into play. 

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.