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Levels to watch: FTSE 100, DAX and Dow

Short-term upside for the indices does little to boost long-term prospects, for now.

IG Analyst

Publication date : 2018-10-30T09:23:08+0000

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FTSE 100 pushing upwards after overnight decline

The FTSE 100 managed to break through the crucial 7050 swing high on Monday, with that break negating the short-term creation of lower highs and lows.

A break through the 7115 level would provide a substantially more confident bullish view, yet for now we are seeing a short-term bullish pattern playing out. The creation of a new higher high and subsequent retracement points towards this current rally pushing us through the 7087 and 7115 region. Should that occur, it would bring about a much more bullish picture for the index.

FTSE 100 chart

FTSE 100 chart

FTSE 100 chart

DAX turning lower from near-term resistance

The DAX has run into the 11,435 resistance level once again this morning, with the index failing to break through this near-term hurdle.

Should we see such a break it would point towards a likely wider period of upside. There is a strong chance that we are set for a period of strength, although a break above 11,851 would be required to bring about a wider bullish outlook. Until then, the further gains that could come into play in the short term look like a retracement of the 11,851-11,058 decline.

DAX chart

DAX chart

DAX chart

Dow rebounding after yesterday’s sharp sell-off

The Dow Jones has been trending lower over the past week, with the creation of lower highs and lower lows continuing apace.

The fact that we have now seen a break below the wider 76.4% retracement (24,689) adds further credence to this short-term downtrend. As such, further downside looks likely unless we break through the 25,036 swing high.

Dow Jones chart

Dow Jones chart

Dow Jones chart

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