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

Indices are gaining ground from recent downside and consolidation, as markets begin to look towards a resurgence phase.

IG Analyst

Publication date : 2017-09-27T12:26:30+0100

Stock exchange

Source: Bloomberg

FTSE 100 pushing higher from consolidation

The FTSE 100 is breaking higher from its recent consolidation, in what looks like the beginning of another leg higher. A break and an hourly close above 7323 would point towards further upside to come, before we move into another consolidation phase.

There is still scope for this to be a multi-legged retracement of the 7435-7195 sell-off, which would point towards a move into Fibonacci resistance before moving lower once more. With that in mind, look out for potential weakness either at the 61.8% (7343) or 76.4% (7379) retracements. However, for now the trend is clearly pointing towards further upside from here.

FTSE 100 price chart

FTSE 100 price chart

FTSE 100 price chart

DAX breaking higher from recent range

The DAX is pushing out of its recent range, in what looks like another continuation of the strength seen in recent weeks. The deep retracements we have seen without creating a new lower low means there have been many entry opportunities to get long for a beneficial risk-to-reward trade.

However, for now we are watching for an hourly close above 12,648 to provide confirmation signal on this recent bullish breakout. We would need to see the price break below 12,551 to negate this bullish outlook.

DAX price chart

DAX price chart

DAX price chart

Dow showing initial signs of resurgent strength

The Dow Jones is regaining ground after respecting a previous low of 22,281, with the index showing signs of a resurgence. The key thing to watch out for here is whether the index breaks above the 22,366 mark. Should that occur, we would be looking back towards the 22,429 highs.

Conversely, a break back below 22,281 would point towards a more bearish view. As such, the move out of the 22,281-22,365 zone will dictate how things look from here on in.

Dow price chart

Dow price chart

Dow price chart

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