Levels to watch: FTSE 100, DAX and Dow
While they have not managed further gains, indices have held up well, avoiding further declines.
Stronger pound hurts FTSE 100
The FTSE 100 has been a notable underperformer, hit by a stronger pound.
The drop back below the 50-day simple moving average (SMA) of 6864 and the close below 6840 support suggests a lower high has been created and that a fresh downward leg is underway. Near-term targets below 6800 lie at 6640 and 6520. Intraday bounces have been sold, so the index needs to clear 6900 to provide a more bullish view.
DAX sits in a range for now
Dips into the area around 11,020 continue to find buyers for the DAX, but the price needs to clear 11,150 to break out of the range that has prevailed over the past three sessions.
From there the price targets 11,300. A fresh decline below 11,000 would head towards 10,900, rising trendline support from the December lows.
Dow trend still up
While the Dow Jones has not made any further upward progress since Friday, dips continue to be bought, as we saw over the past two days. Intraday drops found buyers around 24,300, helping to provide a more bullish view.
The index now needs to break the zone around 24,750, which has held back progress this week. This would then clear the way to the 200-day SMA at 24,987. A close below 24,300 would mark the beginning of a more bearish view.
The information 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 Bank S.A. 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 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. See full non-independent research disclaimer.
Seize your opportunity
Deal on the world’s stock indices today.
- Trade on rising or falling markets
- Get one-point spreads on the FTSE 100, 1.2 on the Germany 40, and 0.4 on the US 500
- Unrivalled 24-hour pricing
See opportunity on an index?
Try a risk-free trade in your demo account, and see whether you’re on to something.
- Log in to your demo
- Try a risk-free trade
- See whether your hunch pays off
See opportunity on an index?
Don’t miss your chance – upgrade to a live account to take advantage.
- Get spreads from one point on the FTSE 100, 1.2 on the Germany 40, and 0.4 on the US 500
- Trade more 24-hour indices than any other provider
- Analyse and deal seamlessly on smart, fast charts
See opportunity on an index?
Don’t miss your chance. Log in to take your position.
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
