Dow recovery slows and DAX continues to consolidate
The Dow continues to recoup lost ground, while the DAX remains in a period of consolidation after strong gains.
Dow
Monday’s recovery continues to solidify the Dow Jones index’s rebound from the March lows. It has moved back above the 42,000 level which marked the low in December and early January. The late December high at 43,315 now comes into view, following up by the early March high of 44,000. Sellers will be watching for a move back below 42,000 to raise hopes that a lower high has been formed.
DAX
The DAX 40's upward momentum continues to slow in this market, as indicated by the steadily declining stochastic indicator. Current price action looks more like sideways consolidation following the healthy gains of January and February, supporting a bullish view in the medium term.
A push back to 23,500 and then a close above this level resolves the consolidation in favour of the underlying uptrend. Seller will need to see a drop below the 21 February low at 22,100 to suggest that a more substantial pullback is underway.
This information has been prepared by IG, a trading name of IG Markets 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.
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 40
- The only provider to offer 24-hour pricing
Live prices on most popular markets
- Forex
- Shares
- Indices
