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 markets are trying to follow their US counterparts higher. However, with the FTSE 100 just trying to rally out of a period of sideways consolidation, the index is far from the bullish picture seen in the Dow.

IG Analyst

Publication date : 2018-09-19T09:30:52+0100

Video poster image

FTSE 100 breaking through consolidation top

The FTSE 100 is pushing through the 7325 resistance level this morning, with the index looking to drive upwards from a period of consolidation that has been in play over the past two weeks.

With that in mind, there is likely to be a push higher from here as long as we see a closed candle above that 7325 level. Should that break occur, watch for a potential move higher, even if this is just a retracement of the sell-off from 7536.

FTSE 100 price chart

FTSE 100 price chart

FTSE 100 price chart

DAX rallies out of wedge breakdown

The DAX has managed to regain the 12,136 level, proving that the wedge breakdown seen on Monday was a retracement before building on the recent rebound.

Nevertheless, this recent rebound looks like a retracement of the wider sell-off from 12,600 and thus any further near-term upside should be considered as a potential temporary move, with Fibonacci resistance in play.

DAX price chart

DAX price chart

DAX price chart

Dow rallies through key resistance

The Dow Jones rallied through the 26,224 resistance level yesterday, building on the notion that we could see record highs in the not-so-distant future. The uptrend remains intact and thus further gains seem likely as long as we create higher highs and higher lows.

With that in mind, there is a chance we could see the index turn lower for the short term, but this would be perceived as a buying opportunity, with a drop below 25,954 required to negate this bullish outlook.

Dow Jones price chart

Dow Jones price chart

Dow Jones price 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.