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

Recent downside for indices appears to be slowing, with European markets starting to show signs of a resurgence.

IG Analyst

Publication date : 2018-02-21T09:20:47+0000

Video poster image

FTSE 100 consolidates within triangle formation

The FTSE 100 is trading within a symmetrical triangle formation, coming off the back of Monday’s pullback.

With the price having just recently hit the upper threshold of this pattern, there is a good chance we will see short-term downside. However, for the breakout, watch for an hourly close above 7254, or below 7205 for a signal of where we go next.

FTSE 100 price chart

FTSE 100 price chart

FTSE 100 price chart

DAX downturn hits trendline support

The DAX has been regaining ground following a move into trendline support.

There is a strong chance we could see a more protracted move higher should we see a break through the near-term 12,504 resistance. Alternatively, we would need a break below 12,332 to bring a good chance of further downside.

DAX price chart

DAX price chart

DAX price chart

Dow downside brings index into key support

The Dow Jones is trading lower in a much more consistent manner, with short-term intraday lower highs and lower lows in play off the back of a bearish rising wedge breakdown. This is bringing us into the 24,805 support level, which represents the first major swing low out of that wedge.

A break below that 24,805 level would provide a signal that we are set for further weakness going forward. Until then, watch for a potential rally up through recent intraday swing highs, such as 24,985 and 25,025, to provide a 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.