Levels to watch: FTSE 100, DAX and Dow
European indices are starting to show some signs of weakness following recent gains, while the Dow continues to consolidate below key resistance.
FTSE 100 back at key support level
The FTSE 100 has weakened into the 7367 level this morning, representing both Tuesday’s low and the peak from 21 March.
A break below here would signal a short-term bearish picture coming into play as we retrace the gains seen since the 7145 low. A rally up through 7418 would be required to bring about a continuation of the recent bullish theme.
DAX starts ease back after sharp rally
The DAX has seen sharp gains over recent days, with the index hitting the highest level in five months. However, that bullish momentum seems to be waning somewhat, with the index falling below the 11,933 support level.
There is a good chance that this is simply a brief breather for the index, but we will need a break up through 11,977 to prove that. Until then, watch to see if we see any further weakness to bring us into a retracement phase.
Dow continues to consolidate below key resistance
The Dow Jones has been consolidating below the key 26,277 resistance level throughout this week, with markets attempting to ascertain whether this is a precursor to further gains or a topping pattern.
Watch for a break and close above the 26,300 mark to signal a bullish continuation, while an hourly close below 26,123 would bring about 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
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.