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

Levels to watch: FTSE, DAX and Dow

A very mixed bag for European and US equity markets sees strength in the UK counteract weakness in the DAX and Dow.

IG Analyst

Publication date : 2017-03-14T09:18:21+0000

Trader

Source: Bloomberg

FTSE continues to trend higher

The FTSE is continuing its ascent this morning, with the index pushing back towards the crucial 7397 resistance level. The ability to break through that level will say a lot about whether we will see this rally continue apace.

However, with the price forming a bearish rising wedge, there is a good chance we could be heading towards a potential pullback, should the price fall below the latest swing low (currently 7359). Until then, the uptrend continues to dominate.

FTSE chart

FTSE chart

FTSE chart

DAX fails to push on through Friday’s highs

The DAX is pulling back following a rally into 12.020 (Wednesday’s peak), with the failure to retake 12,068 certainly a worry. The key to whether this current move lower constitutes something bearish is an hourly close below the 11,919 support level.

Until then, we remain within a range that has been respected most of the time in the past 10 days. As such, any move into that 11,919 level would likely spark a bounce. A break below here would look bearish, while a jump back above 12,020 would provide a more bullish outlook.

DAX chart

DAX chart

DAX chart

Dow grinding lower, yet remains above key level

The Dow Jones has been drifting lower following the rally through 20,951 resistance on Friday. With the price moving gradually lower this morning, there is a good chance we could see another move lower in the short term. However, there is still a chance that what we are seeing is a retracement of the rally from 20,775, and as such the possibility of a bounce remains relevant.

A break below 20,775 would certainly be a big blow to Dow bulls, providing a more bearish outlook for the medium term. Until then, this downside could be fleeting.

Dow Jones chart

Dow Jones chart

Dow Jones chart

IGA, may distribute information/research produced by its respective foreign marketing partners within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

This information/research prepared by IGA or IG Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. 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. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

See important Research Disclaimer.

Find articles by writer

Disclaimer:

All forms of investments carry risks and trading CFDs may not be suitable for everyone. CFDs are leveraged instruments and can result in losses that exceed deposits, so please ensure that you fully understand, and are aware of, the risks and costs involved. Refer to the Risk Disclosure Statement and Risk Fact Sheet.

IG Asia Pte Ltd (Co.Reg.No. 200510021K) is regulated by the Monetary Authority of Singapore and holds a capital markets services licence for dealing in capital markets products that are over-the-counter derivatives contracts and is an exempt financial adviser.

IG provides an execution-only service. The information in this advertisement does not contain (and should not be construed as containing) investment advice or an investment recommendation, 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. You should consider your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

The information on this site is not directed at residents of the United States or Belgium 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.

This advertisement has not been reviewed by the Monetary Authority of Singapore.