(Bloomberg) -- Futures on Germany’s DAX Index and the U.K.’s FTSE 100, which last week posted their biggest weekly rally since at least April, may break through resistance levels for further gains, according to Lloyds TSB Corporate Markets.
DAX futures, an indication of future movements in Germany’s benchmark index for equities, may climb as much as 10 percent to 5,500 from their July 17 close at 4,988, said Paul Rodriguez, a technical analyst at Lloyds in Londoon.“Upside breakout is close for core equities as risk appetite increases,” Rodriguez wrote in a report today. “DAX index futures should make an attempt to break a strong resistance level at 5,178.” The analyst sees the equivalent resistance for FTSE 100 futures at 4,471, compared with the close at 4,362 on July 17.
Stocks worldwide rallied last week as U.S. companies from Goldman Sachs Group Inc. to Johnson & Johnson reported earnings that beat analysts’ estimates, adding to signs the first global recession since World War II is easing.DAX futures expiring in September climbed 1 percent to 5,036 as of 4:27 p.m. in Frankfurt, while futures on the FTSE 100 expiring in the same month added 1 percent to 4,405.5.Technical analysts look at price charts to forecast resistance levels, or ceilings restricting further price increases, and support levels, or floors limiting declines. A breakout above the resistance level is considered a sign for further gains.
No comments:
Post a Comment