Levels to watch: FTSE, DAX and Dow

The bulls are back in charge, as the expected rally is finally coming to fruition across the board.

German stock exchange
Source: Bloomberg

FTSE breaking into more bullish structure

The FTSE 100 has broken through 7265 this morning, heightening the chance that we have seen the end of the sell-off. With that move, we now have higher highs and higher lows on an intraday basis.

For greater confidence an hourly close above 7304 would point towards a push back into the all-time highs of 7448. For now, we are seeing tentative signs of that coming to fruition, and as such a bullish outlook is in play unless we break below 7220.

DAX continues to push higher

The DAX has pushed onwards once more this morning, in what has been a very positive 24-hours for the index. Yesterday’s pullback provided us with a cheaper area to get in as expected.

However, we are now seeing the index surging higher in more of a breakout style rather than the gradual moves seen over the past week. As such, further gains seem likely from here, with no resistance up ahead. A break back below 12,476 would be required to negate this bullish view.

Dow begins bullish breakout

The Dow Jones finally has shown its true colours, with price rallying out of a descending channel and breaking through the 20,959 swing high. This gives me the confidence that we are set for a surge higher for the index. Of course we need to consider tomorrow’s jobs report as a driver of volatility. However, all things remaining equal, the chart looks primed for a strong surge higher and renewed uptrend.

With that in mind, further gains are expected from here. A break and hourly close back below 20,873 would be required to negate that view.

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 IG 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.

Find articles by writer