Levels to watch: FTSE 100, DAX and Dow

The DAX and Dow are showing signs of a potential bullish phase coming into play. Meanwhile, the FTSE 100 remains stuck in consolidation mode ahead amid the heightened Brexit uncertainty.

FTSE 100 continues to consolidate

It has been a difficult week to trade the FTSE 100, with Brexit volatility failing to provide a clear direction for UK stocks.

The 76.4% retracement around 7180 still remains a key area which has to be broken to point towards a possible move towards 7212. Alternately, a break below 7124 would provide a bearish breakdown signal. Until then, further consolidation looks likely.

DAX reversing from trendline resistance

The DAX has seen its gains limited, with trendline resistance helping send the market back into the 200-hour simple moving average (SMA).

A break below that moving average would provide an important sell signal. However, with the index providing lower highs and higher lows, the directional bias for this market is not clear right now. Thus, a break below 11,473 or above 11,622 would provide the bias from here on in.

Dow approaching key bullish breakout level

The Dow Jones has been regaining ground, with the price seemingly finding it tough to break through the 25,765 peak from Tuesday.

This area of resistance the Tuesday and Wednesday peaks (25,765-25,779) provides us with a key bullish breakout zone if broken. The longer-term charts do highlight the possibility of a wider retracement of the 26,241. However, for the near term, the ability to break through that resistance zone is going to be key for sentiment.

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.