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 100, DAX and Dow

European indices are following the US lead, with the DAX breaking through key resistance, while the FTSE attempts to do the same.

IG Analyst

Publication date : 2018-06-12T09:05:06+0100

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FTSE 100 rallies back into key resistance

The FTSE 100 is pushing higher once again this morning, with the rally past the 76.4% highlighting the desire to challenge the crucial 7772 resistance level.

Should we see a break and hourly close above there, it would signal a bullish reversal of the weakness seen in late May. As such, the ability or inability to break through 7772 will be key to determining the outlook for the coming weeks.

FTSE 100 chart

FTSE 100 chart

FTSE 100 chart

DAX pushing higher from Fibonacci support

Once again we have seen the DAX respecting a 76.4% Fibonacci level, with the price rallying from the 12,635 level this time.

The DAX appears to be leading the way over the FTSE 100, given the break through 12,929, paving the way for further gains. This confirms that the period of weakness seen in late May is over, with the price likely to make its way towards the previous peaks of 13,038 and 13,208. A break below 12,611 would be needed to negate this bullish outlook.

DAX chart

DAX chart

DAX chart

Dow pushes onwards

The Dow Jones continues to outperform, despite the rally seen in the dollar overnight.

This looks likely to continue, with any short-term pullback looking like a buying opportunity, as long as we do not see the price fall below 25,075.

Dow Jones chart

Dow Jones chart

Dow Jones chart

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