Levels to watch: FTSE, DAX and Nasdaq

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

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.

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.

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.

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.