CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Levels to watch: FTSE, DAX and Dow

A weakening pound pushes the FTSE higher, yet with the FTSE, DAX and Dow all at key resistance, there is a major challenge up ahead.

anonymous

Publication date : 2017-07-12T09:17:32+0100

New York Stock Exchange trader

Source: Bloomberg

FTSE rallies back into range top

The FTSE has been incredibly predictable this week, with the July range of 7300-7386 holding up in a very consistent manner. With dovish comments from Bank of England’s (BoE) Ben Broadbent, we are seeing weak pound drive the FTSE back into the crucial 7381-7392 resistance zone.

Should we post an hourly close above 7392, then this could point towards a breakout in play. However, until that happens there is a good chance we will see the sellers come in once more from here.

FTSE chart

FTSE chart

FTSE chart

DAX attempting to break through key resistance

The DAX is back at the May/June double top and July double bottom neckline. Clearly given the existence of both those necklines, a break higher from here would be highly notable.

Such a break would point towards a potential double bottom projected target of 12,681. The interesting thing about that projection is that it falls short of the 12,735 swing high. With that in mind, a break higher from here would look like a retracement of the sell-off from 12735 and thus we could still see further downside. However, for now, we are watching intraday charts at this crucial resistance levels for it could bring us a spike higher or potential pullback.

DAX chart

DAX chart

DAX chart

Dow heading back into trendline resistance

The Dow Jones is consolidating after a highly volatile US session yesterday thanks to Donald Trump Jnr. For now, we have a clearly defined trendline that continues to hold. A break and hourly close above 21,441 would point towards a bullish resurgence.

However, until then we have a good chance of weakness at trendline resistance and thus shorts around trendline resistance, with stops above 21,441 look attractive for a short-term move back into the 21,400 region.

Dow Jones chart

Dow Jones chart

Dow Jones chart

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This information has been prepared by IG, a trading name of IG Markets Limited and IG Markets South Africa Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, 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. 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. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. International accounts are offered by IG Markets Limited in the UK (FCA Number 195355), a juristic representative of IG Markets South Africa Limited (FSP No 41393). South African residents are required to obtain the necessary tax clearance certificates in line with their foreign investment allowance and may not use credit or debit cards to fund their international account.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. Clients can lose more than they deposit. All trading involves risk.

IG is a trading name of IG Markets Ltd and IG Markets South Africa Limited. International accounts are offered by IG Markets Limited in the UK (FCA Number 195355), a juristic representative of IG Markets South Africa Limited (FSP No 41393). South African residents are required to obtain the necessary tax clearance certificates in order to utilise their foreign investment allowance should the South African resident wish to open an offshore account with IG Markets Limited.

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