Skip to content

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Please ensure you fully understand the risks involved. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Please ensure you fully understand the risks involved.

Levels to watch: FTSE, DAX and Dow

There has been some weakening across the board for stocks, as a decreasing dollar boosts sterling and the euro and thus puts pressure on the likes of the FTSE and DAX. 

Data on screen
Source: Bloomberg

FTSE 100 could find resistance at 7333

The index has fallen back from its highs above 7300, but while this may simply be another dip in this remarkable trend, a rising pound (admittedly off its lows) could spell the end for the rally.

We would look for an initial close below 7250, and then sub-7200, as an indication the sellers are now in control. Resistance lies at 7295 and then 7333.

FTSE 100

DAX could target 11,420

Despite a push to fresh highs for the year yesterday, the index is weakening this morning. However, bears will need to get the price below the key 11,500 area that has acted as support since the beginning of the year. A close below here would then target 11,420, and then move down to 11,300.

If the price recovers and rallies through 11,624 then we look the 11,725 area as the next point of potential resistance.

DAX

Dow stutters post 20,000

The excitement around Dow Jones 20,000 has masked the fact the index has gone nowhere since mid-December. There is plenty of short-term support available, at 19,855, 19,769 and then 19,708, but below the latter we could see a swift move to 19,408.

The 20,000 mark still remains the key area to watch for on the upside. 

Dow Jones

This information has been prepared by IG, a trading name of IG Australia Pty 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.

Find articles by writer