Levels to watch: FTSE 100, DAX and Dow

European and US indices are starting to look more positive, with yesterday’s rebound providing increasingly bullish signals.

FTSE 100 pushing higher yet again

The FTSE 100 managed to rebound from the 200-day simple moving average (SMA) yesterday, with the index pushing back into the highs.

This points towards further upside to come, with the 76.4% retracement representing the next level of resistance. There is a strong chance we will see another push higher from here, with a break below 7635 required to negate this bullish view.

DAX rebounds from support

The DAX has also rallied from a crucial support level, with the price pushing higher from the 12,535 low respected on 25 July.

The ability to break above the 12,719 swing high is going to be key in determining whether we continue to push higher over the near term.

Dow rally signals next leg higher

The Dow Jones has broken through the 25,505 swing high, with the price pushing into the 25,592 resistance level.

The rally through 25,505 signals a likely end of the weakness seen in the last week of July. However, for greater confidence, look for a break and hold above 25,592 to confirm that bullish signal. 

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