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

Hopes of a US-China trade breakthrough have been rebuffed, causing a short, sharp spike for global indices. Is this going to mark the beginning of a period of weakness for indices?

IG Analyst

Publication date : 2018-11-27T09:46:14+0000

Video poster image

FTSE 100 briefly breaks crucial swing high

The FTSE 100 joined many of the world markets in rallying sharply this morning, after rumours of a breakthrough between the US and China hit Twitter. This has since been rebuffed, causing the FTSE to turn lower.

However, that rally through 7059 highlights a potential bullish breakout in the not-so-distant future. For now, we are heading back towards the 7002 region of support. A break below that level would bring about a bearish near-term view, with a retracement of the rally from 6911 coming into play.

FTSE 100 chart

FTSE 100 chart

FTSE 100 chart

DAX weakening from trendline resistance

The DAX also saw a fleeting rally this morning, with the index pushing into the 200-day simple moving average (SMA) on the four-hour chart.

However, with trendline resistance in play, there is a good chance we will see a downside come into play from here. A break through 11,568 would be required to bring about a more bullish, wider outlook. For now, it looks likely we will see the index start to deteriorate from this region of resistance.

DAX chart

DAX chart

DAX chart

Dow rebound comes under the spotlight

The Dow Jones has rallied towards a potential trendline (only two touches) this week, with the downtrend of late coming into question. To the downside, we have a critical support level in 24,120, which if broken would likely spark another strong leg lower for the market.

However, for now, it is worthwhile seeing how we follow up on the fleeting rally through 24,668 and whether we respect this potential trendline resistance.

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.