Levels to watch: FTSE 100, DAX and Dow

Morning gains in Europe are bringing the FTSE 100 and DAX back into key resistance. With recent downtrends still intact, any gains could be short-term in nature. 

FTSE 100 rallying back into notable resistance level

The FTSE 100 has managed to break through trendline resistance, with the price moving back into the notable 7061 resistance level.

An hourly close above there would point towards the possibility of a rally into the 61.8% retracement area of 7098. While the short-term uptrend points towards further gains, there is a strong chance we are seeing a retracement in play, with the price needing to break above 7256 to negate this wider downtrend.

DAX moves into trendline resistance

The DAX has started turning higher again this morning, with the price moving into trendline resistance.

Crucially, with the price gaining ground from a key support zone around 11,704, there is a chance we could see further upside to come. The key level to watch is the 12,043 swing high, where an hourly close above there would point towards a move into the 61.8% retracement of 12,181.

Dow consolidates after drop into Fibonacci support

The Dow Jones has been consolidating after falling back into the 76.4% retracement support level.

The ability to break below that level (23,728) would point towards a drop into the 23,504 swing low and a continuation of the recent downtrend. The respect of that Fibonacci support level shows a clear hurdle needed to overcome in order to maintain the bearish trend. We would need to see a break above 24,450 to negate this wider downtrend.

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.