Technical analysis: key levels for FTSE, DAX, Dow

Ahead of non-farm payrolls and the European Central Bank rate decision, markets are gaining once again.

Share prices on a board
Source: Bloomberg

FTSE moving closer to 6880

The break above 6800 is one of the most positive signs we have witnessed for the FTSE 100 in a number of days.

Of course, the closer we get to 6880 the more nervousness will increase, but the turnaround in bullish sentiment in recent days means we might, finally, see a break of this level and then on to 6900.

The close above the 50-day moving average certainly put the bias towards more upside, and only a close below 6750 would suggest the start of a more lengthy down move.

DAX trading above 20-DMA

Yesterday was a fairly uneventful day in the end for the Germany 30, but today has so far seen trading above the 20-DMA for the first time in over a week.

A run towards the June highs above 10,000 is evidently on the cards, with the move of the 50-hour moving average above the 200-hour MA acting as the foundation of such a move.

On the downside 9830 should act as support, but a break here and then 9800 would suggest a move lower towards the 100-DMA.

200-hour MA supporting Dow

17,000 was always going to be a bridge too far for the Dow Jones yesterday, but the modest gains indicate that there is still buying pressure in the market.

Futures are already indicating an open near to 17,000, and even a pullback should still be viewed as a buying opportunity. Volatility on NFP day respects few levels, but the 200-hour moving average and then 16,800 could act as support if the headline figure comes in below expectations.

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.