Levels to watch: FTSE 100, DAX and Dow
Stocks are on the rise following a dovish appearance from the Fed, with the FTSE 100, DAX and Dow all reaching crucial areas of resistance after recent gains.
FTSE 100 rallies back into crucial Fibonacci resistance
The FTSE 100 has been rallying sharply off the back of yesterday’s Federal Reserve (Fed) meeting, with the index heading back into the 76.4% resistance for the third time.
That 7002 level is going to be key in determining the outlook for the day, with a rally through it pointing towards a potential move into the crucial 7146 resistance level. Alternately, should it hold, that 7002 level could be the beginning of another move lower for the index.
DAX continues to trend higher
The DAX has once again found support to provide a new higher low on an intraday basis, with the index trading around the peaks seen over the past week.
The break below trendline support yesterday pointed towards a potential breakdown for the index, yet until we see a lower low, further upside remains a distinct possibility.
Dow pushes into Fibonacci and SMA resistance
The Dow Jones has been pushing higher over the start of 2019, with the price now trading around the 76.4% retracement and 200-day simple moving average (SMA).
The ability to push through this region of resistance is key to determining whether we push upwards from here. Ultimately we need to break through 26071 to move out of the wider bearish trend, yet a rally through this area of resistance certainly has bullish connotations for the short term.
This information has been prepared by IG, a trading name of IG Markets Ltd 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. See full non-independent research disclaimer and quarterly summary.
Take a position on indices
Deal on the world’s major stock indices today.
- 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
Prices above are subject to our website terms and agreements. Prices are indicative only
