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

Indices are gaining ground from recent downside and consolidation, as markets begin to look towards a resurgence phase.

IG Analyst

Publication date : 2017-09-27T12:26:21+0100

Stock exchange

Source: Bloomberg

FTSE 100 pushing higher from consolidation

The FTSE 100 is breaking higher from its recent consolidation, in what looks like the beginning of another leg higher. A break and an hourly close above 7323 would point towards further upside to come, before we move into another consolidation phase.

There is still scope for this to be a multi-legged retracement of the 7435-7195 sell-off, which would point towards a move into Fibonacci resistance before moving lower once more. With that in mind, look out for potential weakness either at the 61.8% (7343) or 76.4% (7379) retracements. However, for now the trend is clearly pointing towards further upside from here.

FTSE 100 price chart

FTSE 100 price chart

FTSE 100 price chart

DAX breaking higher from recent range

The DAX is pushing out of its recent range, in what looks like another continuation of the strength seen in recent weeks. The deep retracements we have seen without creating a new lower low means there have been many entry opportunities to get long for a beneficial risk-to-reward trade.

However, for now we are watching for an hourly close above 12,648 to provide confirmation signal on this recent bullish breakout. We would need to see the price break below 12,551 to negate this bullish outlook.

DAX price chart

DAX price chart

DAX price chart

Dow showing initial signs of resurgent strength

The Dow Jones is regaining ground after respecting a previous low of 22,281, with the index showing signs of a resurgence. The key thing to watch out for here is whether the index breaks above the 22,366 mark. Should that occur, we would be looking back towards the 22,429 highs.

Conversely, a break back below 22,281 would point towards a more bearish view. As such, the move out of the 22,281-22,365 zone will dictate how things look from here on in.

Dow price chart

Dow price chart

Dow price 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.