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Levels to watch: FTSE, DAX and Dow

The FTSE is attempting to match the Dow, with post-BoE gains helping it along. However, the DAX continues to feel the ill-effects of a strengthening euro.

IG Analyst

Publication date : 2017-08-04T09:28:17+0100

Market data

Source: Bloomberg

FTSE rallies into key resistance level

The FTSE has pushing higher following yesterday’s Bank of England (BoE) meeting, with the price returning back towards the crucial 7487 mark. A break above there would provide a bullish outlook, meaning the weakness we have seen over the fortnight is simply a 76.4% retracement.

As such, watch out for a potential hourly close above 7487 as a strong bullish signal. Alternately, an inability to break through that level would point towards a possible retracement of yesterday’s sharp rally.

FTSE chart

FTSE chart

FTSE chart

DAX continues to underperform

The DAX has been moving lower from the 76.4% retracement this week, with the downtrend of late being continued apace. A break below 12,086 would signal that this recent downtrend is set to continue.

A break back above the 12,305 would be the signal that we are looking likely to reverse out of this recent downtrend.

DAX chart

DAX chart

DAX chart

Dow shows no signs of slowing

The Dow Jones continues to push higher, as a weakening dollar and bullish earnings season help things along. The 50-hour simple moving average (SMA) has been providing good support, and thus watch out for that to hold once more should we pull back.

Essentially a bullish outlook remains in place, with an hourly close below 21,982 required to negate this bullish view.

Dow Jones chart

Wall-Street-(DFB)_LG04-08-17

Dow Jones chart

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