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Levels to watch: FTSE, DAX and Dow

An indecisive day for indices yesterday and it seems to be going the same way this morning.

Wall Street
Source: Bloomberg

FTSE 100 shows a shy move higher

A flat day yesterday has been followed by a modest push higher, towards the 7330 level that marked the pre-market peak on Monday. Above this we have 7360 and the downtrend line off the all-time highs.

This has held since March, so the bulls need to break this to spark the kind of breakout on the FTSE that we have seen of late on other indices. A drop back today could find support at 7290, then down to 7260 and then to 7192.

FTSE chart

DAX losing upside momentum?

A swift drop on the DAX yesterday cleared out some weak longs, with dip buyers already entering the fray.

However, daily momentum appears to have shifted to the downside for now, so we look to support around 12,600 and then 12,408 in case of a bigger drop. Any rally will target 12,850, the all-time high from last week.

DAX chart

Dow unable to break 21,000

The session finished near the highs of the day, but the Dow Jones continues to have trouble breaking above 21,000. A close above here would likely be followed by a move above 21,171, the record high from March.

The first area to watch for support is 20,846, followed by the 50-day simple moving average (SMA) at 20,791. Beyond this the rising uptrend from the January lows comes into play around 20,560. In this market, even a 2% drop may be the only pullback we see. 

Dow Jones chart

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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.