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Levels to watch: FTSE, DAX and Nasdaq

FTSE, DAX and Nasdaq all come into key resistance levels following recent gains.

IG Analyst

Publication date : 2017-06-20T09:28:36+0100

Traders

Source: Bloomberg

FTSE weakening from key resistance level

The FTSE is seeing some weakness in recent hours, following consolidation overnight at the key resistance level of 7545. This comes off the back of a trendline break, which is now providing support.

A break below this level would be somewhat bearish, yet it would be a push below the 7492 level that would provide a stronger sell signal. As such, a break from 7492-7552 zone will be the determinant of the outlook for the FTSE.

FTSE chart

FTSE chart

FTSE chart

DAX rally comes under pressure at trendline

The DAX has managed to break into new highs overnight, clearing away any fears associated with the new low created last week. However, with the price having run into trendline resistance, we are now seeing some weakness come into play.

As such, while a bullish wider view remains for now, it makes sense to await a resolution of exactly what is going to happen next. Whether that means a continuation pattern, a retracement, or simply another move higher from here. For new positions, it makes sense to wait for further information given that a stop loss of 12,617 is too far away.

DAX chart

DAX chart

DAX chart

Nasdaq at key resistance level

The Nasdaq has rallied into a crucial resistance level overnight, with the price resting below the double bottom neckline of 5780. How the market responds to this level will be crucial, with an hourly close above 5780 providing a strong buy signal. On the flipside, we could see some form of a pullback from here to continue to recent 5633-5780 range.

The wider picture is bullish and the expectation is that we will return to the previous highs soon. However, the reaction to this level will dictate how long that move will take. We would need a break below 5548 to negate that wider bullish trend.

Nasdaq chart

Nasdaq chart

Nasdaq chart

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