CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Please ensure you fully understand the risks involved. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Please ensure you fully understand the risks involved.

Levels to watch: FTSE 100, DAX and Dow

Further gains look likely for consistent DAX and Dow markets, with the FTSE 100 attempting to claw back lost ground.

IG Analyst

Publication date : 2017-09-20T10:06:59+0100

Stock exchange

Source: Bloomberg

FTSE 100 rallies into key resistance

The FTSE 100 has continued to move higher following a 76.4% retracement over recent weeks. The push higher from the Fibonacci level has taken us back to the scene of last week’s big breakdown. That support level of 7294 now forms resistance, with the price action dictated by how this index responds to that level.

An hourly close above 7294 would point towards a potential move into 7320 or 7350. Conversely, an hourly close below 7262 could point towards a weaker trend coming back into play.

FTSE100 chart

FTSE100 chart

FTSE100 chart

DAX turning higher following 76.4% retracement

The DAX is working out very well, with a 76.4% retracement earlier in the week giving way to subsequent gains. With the price pushing through 12,566 resistance, the next hurdle comes at 12,576.

Ultimately, it looks likely that we will see a strong move higher from here, with a bullish outlook remaining in place unless we see a move back below 12,506.

Germany30 chart

Germany30 chart

Germany30 chart

Dow grinding higher with minimal pullbacks

The Dow Jones is moving higher this week, with the price trading within a rising wedge. The pair has previously given us few decent pullbacks to buy into, and given the current bearish wedge pattern there is a potential for a move lower.

For a bearish short-term picture to come to fruition, watch out for an hourly close below 22,365, and 22,340. However, until then further upside is the preferred outcome.

DowJones chart

DowJones chart

DowJones chart

This information has been prepared by IG, a trading name of IG Australia Pty 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.

Find articles by writer

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You do not own or have any interest in the underlying asset. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. Please consider the Margin Trading Product Disclosure Statement (PDS), Risk Disclosure Notice and Target Market Determination before entering into any CFD transaction with us.

The value of shares, ETFs and ETCs bought through an IG share trading account can fall as well as rise, which could mean getting back less than you originally put in. Past performance is no guarantee of future results.

Please ensure you fully understand the risks and take care to manage your exposure.

The information on this website is prepared without considering your objectives, financial situation or needs. Consequently, you should consider the information in light of your objectives, financial situation and needs.

This website is operated by IG Australia Pty Ltd. IG Australia Pty Ltd is located on Level 32, Queen & Collins, 376-390 Collins Street, Melbourne, VIC 3000. ABN 93 096 585 410, Australian Financial Services Licence No. 515106. Derivatives Issuer Licence in New Zealand FSP No. 684191, NZBN 9429047618251.

The information on this site is not directed at residents of the United States or any particular country outside Australia or New Zealand and 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.