Levels to watch: FTSE, DAX and Dow

Buyers are returning to equities, with the FTSE 100 looking strong and US markets buoyed by a decent earnings season thus far.

Traders in NYSE stock exchange
Source: Bloomberg

FTSE seeks to break Friday’s high

As on Friday, the index bounced yesterday at 6940. This clear indication of support has allowed the index to rally, but it now needs to break Friday’s high at 7050, to establish a new high and create the conditions for a potential uptrend.

If we do move on through 7050 then we would look towards the peak at 7130. A fall today would test 6940 and then potentially head on towards 6800.

DAX buyers help the index recover

Buyers have stepped in here and the index has recovered well from last Thursday’s lows. Indeed, we could see yesterday’s dip to just below 10,500 as a new higher low. Now if the index can push on through Friday’s high of 10,617, then we would have a new higher high as well.

As before, the bulls need to get the index through the 10,650/10,700 range that stalled progress earlier in October.

Dow aims to move higher

US markets stabilised last night, and the Dow Jones managed to hold above 18,050. Now it needs to push on through 18,250, the Friday peak, and then will target the 50-day simple moving average at 18,333.

As long as it holds above 18,050 then a new uptrend may well be in place, but a drop through 18,050 would head towards last Thursday’s low at 17,959. 

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.