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

Buyers are returning to equities, with the FTSE 100 looking strong and US markets buoyed by a decent earnings season thus far.

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.
Traders in NYSE stock exchange
Source: Bloomberg

FTSE seeks to break Friday’s high

As on Friday, the index bounced yesterday at 6940. This clear indication of support has allowed the index to rally, but it now needs to break Friday’s high at 7050, to establish a new high and create the conditions for a potential uptrend.

If we do move on through 7050 then we would look towards the peak at 7130. A fall today would test 6940 and then potentially head on towards 6800.

DAX buyers help the index recover

Buyers have stepped in here and the index has recovered well from last Thursday’s lows. Indeed, we could see yesterday’s dip to just below 10,500 as a new higher low. Now if the index can push on through Friday’s high of 10,617, then we would have a new higher high as well.

As before, the bulls need to get the index through the 10,650/10,700 range that stalled progress earlier in October.

Dow aims to move higher

US markets stabilised last night, and the Dow Jones managed to hold above 18,050. Now it needs to push on through 18,250, the Friday peak, and then will target the 50-day simple moving average at 18,333.

As long as it holds above 18,050 then a new uptrend may well be in place, but a drop through 18,050 would head towards last Thursday’s low at 17,959. 

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.