Two trades to watch: FTSE, Dax

Europe is set for a relatively quiet start despite record highs on Wall Street. Earnings are in focus with heavyweights BP & HSBC reporting.

Charts (3)

FTSE steady as investors digest BP & HSBC results 

FTSE  futures are trading cautiously ahead of the open, the broad mood in the market is wobbling ahead of tomorrow’s Fed decision. 

BP share price and HSBC share price movement will be in focus after both heavyweights beat forecasts. 

Earnings are also out from Whitbread,  Aveva, and PZ Cussons 

A slightly weaker pound owing to the strengthening US Dollar underpins the UK index. 

Where next for the FTSE? 

After falling steeply last week, the FTSE is clawing higher as it looks towards 7050.  

Trading above its 50 & 100 EMA and within the multi-month ascending channel the established bull trend remains intact. The RSI is also supportive of further upside. 

Bulls will look towards resistance at 7050, the post pandemic high. Strong resistance can be seen at 7120. 

On the down side, support can be seen at 6850, last week’s low, ahead of 6800, the 50 EMA and a level which provided resistance across February. A break below here could negate the current up-trend. 

Learn more about trading indices


Dax trades cautiously ahead of Fed  

After record highs were achieved on Wall Street the European open is looking lacklustre. 

Cautious trade dominates ahead of a busy week for earnings both in Europe and the US.  

Earnings so far have been strong and are likely to help the Dax keep its bullish bias. 

Risk remain regarding covid 

Where next for the Dax? 

The Dax edged higher on Monday and is see extending that recovery , although it still trades below its all time high hit earlier in the month. 

The continues to trade above its 50 & 100 EMA and above the upper band of its ascending channel. In an established bull trend. 

The RSI has moved out of overbought territory and is supportive of more upside. 

Support at 15100 is holding which offering a base from which to extend towards resistance at 16365 and on to 15500 the all time high. 

On the downside support is seen at 15100, but a move below 15000 April’s low is needed in order to negate the current uptrend. 


Build your confidence risk free

More from Trade Ideas

Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.