Levels to watch: FTSE, DAX and Dow

European indices are exhibiting significant choppiness and a lack of direction, with the Dow Jones providing the best chance of a trending market.

US trader
Source: Bloomberg

FTSE choppy amid low volume

The FTSE 100 is clearly moving from a trending market to a choppy, sideways one. This makes trading significantly more difficult.

However, for today, it seems as if we are seeing a symmetrical triangle formation in play and thus the breakout will give us some idea of forthcoming direction.

As such, a break lower, with a close below 6016 would provide a bearish view with support levels of 5990, 5969 and 5940 in view. Alternately, a closed hourly candle above 6115 would provide a bullish view with resistance levels of 6168, 6174 and 6251.

DAX loses trend amid volatility

The DAX is clearly also moving into a period where the trend is becoming more difficult to ascertain, as perfectly highlighted by yesterday’s volatile day.

We are seeing price fall currently and this brings the potential for trendline and moving average (200-hour) support to come into play around 10,524.

With price trading within a descending channel, there is also a good chance that price could return to the bottom of this formation before rallying once more.

Support levels of note are at 10,524, 10,486 and 10,448, whereas resistance comes in at 10,630, 10,653 and 10,805.

Dow gains ground overnight

The Dow appears to be providing the greatest potential for a trending market, with the index breaking through a double-bottom yesterday.

It has since formed support at that 17,278 level and created a new high. We are seeing price pull back as we speak, yet as long as we do not see an hourly close below 17,278 or 17,262, then another leg higher is deemed likely.

Support levels of note are at 17,278, 17,262 and 17,172, with resistance levels at 17,338, 17,399 and 17,415. 

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.