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 100, DAX and Dow

Short-term weakness could bring buying opportunities for the FTSE 100, DAX and Dow.

anonymous

Publication date : 2017-09-19T09:38:05+0100

German stock exchange

Source: Bloomberg

Will FTSE 100 rebound?

The FTSE 100 managed to gain ground after selling off into the 76.4% retracement yesterday, seeming relatively consistent, if unremarkable, and buying pressure. Today we are seeing a weakness at the open, with the price threatening to move out of this short-term bullish move. However, for the bearish outlook to come back into play, we would need to see a break below 7228.

Until then, there is a chance we could simply be seeing another short-term pullback before the index moves higher once more. The 61.8% retracement and 50-hour simple moving average (SMA) support level has so far marked the low of the day. As long as we do not break below 7228, another move higher looks likely from here.

FTSE100 chart

FTSE100 chart

FTSE100 chart

DAX turning lower, yet buyers likely to return

The DAX is moving lower in a similar manner to the FTSE 100, with the price falling out of a rising wedge pattern. However, given the bullish breakout seen yesterday, this looks like a potential buying opportunity rather than something to worry about.

As such, watch out for a potential move into the 12,531 Fibonacci support level (76.4%) for a possible bullish setup. A break below 12,505, and in particular 12,490 would negate this bullish outlook.

Germany30 chart

Germany30 chart

Germany30 chart

Dow pullback could provide buying opportunity

The Dow Jones is seeing a slight amount of weakness this morning, coming off the back of yet another record high. Whether we see this sell-off persist or not, remains to be seen, yet any further downside would simply provide us with a better buying opportunity as we seek to get in on this uptrend.

A break below 22,286 would negate this short-term uptrend, with longs preferred unless we break that level.

Dow chart

Dow chart

Dow 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.

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