Levels to watch: FTSE, DAX and Dow

The FTSE is attempting to match the Dow, with post-BoE gains helping it along. However, the DAX continues to feel the ill-effects of a strengthening euro.

Market data
Source: Bloomberg

FTSE rallies into key resistance level  

The FTSE has pushing higher following yesterday’s Bank of England (BoE) meeting, with the price returning back towards the crucial 7487 mark. A break above there would provide a bullish outlook, meaning the weakness we have seen over the fortnight is simply a 76.4% retracement.

As such, watch out for a potential hourly close above 7487 as a strong bullish signal. Alternately, an inability to break through that level would point towards a possible retracement of yesterday’s sharp rally. 

DAX continues to underperform

The DAX has been moving lower from the 76.4% retracement this week, with the downtrend of late being continued apace. A break below 12,086 would signal that this recent downtrend is set to continue.

A break back above the 12,305 would be the signal that we are looking likely to reverse out of this recent downtrend.

Dow shows no signs of slowing

The Dow Jones continues to push higher, as a weakening dollar and bullish earnings season help things along. The 50-hour simple moving average (SMA) has been providing good support, and thus watch out for that to hold once more should we pull back.

Essentially a bullish outlook remains in place, with an hourly close below 21,982 required to negate this bullish view.

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This information has been prepared by IG, a trading name of IG Markets Limited and IG Markets South Africa Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. 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. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. International accounts are offered by IG Markets Limited in the UK (FCA Number 195355), a juristic representative of IG Markets South Africa Limited (FSP No 41393). South African residents are required to obtain the necessary tax clearance certificates in line with their foreign investment allowance and may not use credit or debit cards to fund their international account.

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