Levels to watch: FTSE 100, DAX and Dow

The indices are gradually gaining ground, yet with wider downtrends still intact, there are still major hurdles that need to be overcome to signal a bullish medium-term picture.

FTSE 100 continues to gain ground

The FTSE 100 has been grinding higher over recent trading days and today is no different, with the index hitting a new two-month high this week.

The rally past Fibonacci resistance at 7000 points towards the possibility that this move could see us break out of the downtrend with a move above 7196. However, for now the intraday picture simply tells us that we could see further upside as long as we do not break below the 7000 swing low.

DAX gaining ground after recent breakdown

The DAX has been threatening to break sharply lower, following the fall out of a rising wedge pattern. A drop below 11,004 would have provided that notable bearish signal.

However, we are seeing the index move away from that support threshold and towards the resistance zone around 11,308. A break above there would signal a bullish continuation in play.

Dow continues gradual ascent

The Dow Jones pushed onwards yesterday, with the gradual ascent of recent over the past week continuing to play out. The rally through the 76.4% retracement and 25,000 handle points towards a heightened chance of us breaking out of this wider downtrend by rallying through 26,072.

However, as is evident with the trendlines in play, the index appears to be trading within a rising wedge formation. Watch for a break through trendline resistance to add greater confidence that this uptrend has further legs. Alternately, a break below trendline support and the 24,835 level would start building a more bearish picture.

IGA, may distribute information/research produced by its respective foreign affiliates 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.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. 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, and 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.

Please see important Research Disclaimer.

Take a position on indices

Deal on the world’s major stock indices today.

  • Trade the lowest Wall Street spreads on the market
  • 1-point spread on the FTSE 100 and Germany 30
  • The only provider to offer 24-hour pricing

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
Sell
Buy
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Sell
Buy
Updated
Change

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Sell
Buy
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
China 300
-
-
-
-

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.