CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved.

Levels to watch: FTSE, DAX and Dow

European and US markets continue to go their own ways, with the bearish FTSE and DAX outlook contrasting with the bullish Dow.

IG Analyst

Publication date : 2017-08-02T09:17:09+0100

German stock exchange

Source: Bloomberg

FTSE turning lower from trendline resistance

The FTSE is turning lower from trendline resistance this morning, following a rally within a recent downtrend. Given the continued creation of lower highs and lower lows, this move was likely.

As such, the bearish outlook remains unless we see a break above the 7487 mark.

FTSE chart

FTSE chart

FTSE chart

DAX rallies into key resistance

The DAX rallied into the 12,310 resistance level yesterday, set within a downtrend seen throughout the past month. That previous support level of 12,310 is now forming new resistance, which crucially takes place below the key swing low of 12,344.

Therefore, a bearish short-term view is in play as long as we do not see a break up above 12,344.

DAX chart

DAX chart

DAX chart

Dow consolidation unlikely to last

The Dow Jones is drifting sideways this morning, following yet another all-time high yesterday. Crucially, we are seeing the price move towards the 50-hour simple moving average (SMA), which has not been breached for a week now.

As such, further upside seems likely today for the creation of a new high. A break back below 21,940 would be needed to negate this bullish short-term view.

Dow Jones chart

Dow Jones chart

Dow Jones chart

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