Levels to watch: FTSE 100, DAX and Dow

Yesterday’s US inflation fueled sell-off has proved short-lived, with the price rallying sharply in the aftermath. With key resistance levels up ahead, the indices are building an increasingly bullish story.

Despite US inflation FTSE 100 continues to gain

The FTSE 100 is continuing its ascent today, with the sell-off seen around yesterday’s rise in US inflation proving short-lived.

That is an encouraging sign, with a break above 7312 required to confirm a bullish outlook. For now, the index is challenging trendline resistance, where a break to the upside could spark a surge towards 7280. Ultimately, the directional bias will be clearer with a break above 7312 or below 7144.

After recent bounce DAX turns lower

The DAX is showing signs of short-term weakness, following yesterday’s sharp rise.

This could set us onto a short-term pullback phase. However, with the price breaking above 12,380, it seems like we are moving into a more bullish phase, with the 12,652 level forming the next resistance level of note.

Amid short-term uptrend Dow continues to climb

The Dow Jones continues to move higher this morning, as it builds on yesterday’s failed break lower.

The push into a new short-term higher high points towards further upside despite yesterday’s fleeting sell-off. Thus, a bullish outlook is in play unless we fall back below 24,313. The next key resistance level of note is at 25,298. 

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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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