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Levels to watch: FTSE, DAX and Dow

US and UK markets continue to drift, but eurozone stocks look a little more vulnerable to further downside.

Chris Beauchamp ChrisB_IG
Chief Market Analyst, London

Publication date : 2017-06-07T08:52:03+0100

German stock exchange

Source: Bloomberg

FTSE election-sensitive but still bullish

Bulls continue to hold the FTSE above the 7500 level, with the post-April trendline also coming into play. In case a bigger move lower starts, then 7450, 7408 and 7360 all stand as support lines.

With the election now almost upon us, we may see a further sideways drift until the result becomes known, but it would need a move below the 50-day simple moving average (SMA) at 7370 to really put a dent in the bullish trend.

FTSE chart

FTSE chart

FTSE chart

DAX in consolidation

Eurozone stocks took a bit of a knock yesterday, but overall the DAX continues to sit in the middle of its consolidation period between 12,500 and the 12,900 area.

In the short term, the 12,660 area has acted as support, with a break through here likely to open the way to 12,500 and the 50-day SMA at 12,477.

DAX chart

DAX chart

DAX chart

Dow retracing slightly

The Dow Jones is nudging below the 21,171 level, a previous all-time high, and could now be set for a bigger move to 21,023.

It looks to be losing the rising trendline that has held since the May low, but we are still only 0.4% from Friday’s new all-time high. This looks more like a gentle retracement rather than anything else.

Dow Jones chart

Dow Jones chart

Dow Jones chart

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