CFDs are a leveraged product and can result in losses that exceed deposits. Trading CFDs may not be suitable for everyone, so please ensure you fully understand the risks and take care to manage your exposure.
Established in 1974
Over 185,000 clients worldwide
15,000 markets worldwide

Levels to watch: FTSE, DAX and Dow

Indices begin to show signs of turning following period of strong upside.

CFDs are a leveraged product and can result in losses that exceed deposits. Trading CFDs may not be suitable for everyone, so please ensure you fully understand the risks and take care to manage your exposure.
A man with data reflected in his glasses
Source: Bloomberg

FTSE rounding off as we await confirmation of retracement or consolidation

The FTSE has traded largely sideways over the past two trading days. However, the failure to create a new high above the 6808 resistance level is a warning sign that we could be seeing the beginning of a retracement lower. We have not seen the new low to confirm that, and thus I would be bearish over the short term should the price move below 6750. However, this could simply be a period of sideways consolidation and a move above the 6808 level would bring a renewed bullish outlook. 

DAX failure to create new high brings possible retracement

A similar story for the DAX, with today’s price action showing a new lower high. This failure to push above the 11,800 resistance, which was Thursday’s high, signals the possibility of a move lower in the coming days. I would need to see a move below 11,650 and 11,600 to gain confidence that we are going to see a move back towards the 11,448 and 11,344 region.

Dow also showing signs of turning despite early strength

The Dow Jones is also in the process of creating a new lower high, below Thursday’s 18,154 peak. I would need to see a move above that resistance point to give me confidence that we will continue to move higher. Otherwise the writing could be on the wall for a period of downside back towards 17,914. However, for this bearish view to be confirmed, I would need to see a move below the 18,030 and 18,010 support levels.

This information has been prepared by IG, a trading name of IG 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. 

CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

Find articles by analysts