CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. 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 financial instruments and come with a high risk of losing money rapidly due to leverage. 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

Yesterday’s decline for the indices has been arrested for now, with the price heading back into key resistance. This provides us with clear hurdles to overcome to bring back the bullish outlook.

IG Analyst

Publication date : 2017-11-14T09:09:13+0000

Wall Street

Source: Bloomberg

FTSE 100 regaining ground after sell-off

The FTSE 100 has started to regain ground this morning, coming off the back of a strong sell-off yesterday. That move lower brought the price back below the 7428 support level, providing a strong possibility of a wider sell-off before long.

However, for now, we are seeing the price move back towards trendline and simple moving average (SMA) resistance. As such, while we could see further short-term upside, a break above 7475 would be required to provide confidence of a bullish move for the index.

FTSE 100 chart

FTSE 100 chart

FTSE 100 chart

DAX back into trendline resistance

The DAX has managed to regain ground overnight, with the price moving into trendline resistance. The confluence of the 76.4% retracement, trendline, and SMA (50-hour) resistance provides us with a clear hurdle to overcome.

We would need to see a break above 13,164 to provide us with a bullish outlook. Until then, the reaction to the 76.4% retracement, trendline, and SMA confluence is going to be key to determining where we go from here.

DAX chart

DAX chart

DAX chart

Dow attempting to break key resistance zone

The Dow Jones is back at trendline resistance, following a move back into the 23,324 support zone.

With the price attempting to break higher, the key is whether we see an hourly close above 23,460, to signal a bullish shift for the index.

Dow Jones chart

Dow Jones chart

Dow Jones chart

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 writer

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. Professional Clients can lose more than they deposit.

The value of shares and ETFs bought through an IG stock trading account can fall as well as rise, which could mean getting back less than you originally put in. Please ensure you fully understand the risks and take care to manage your exposure.

IG does not issue advice, recommendations or opinions in relation to acquiring, holding or disposing of a CFD. IG is not a financial advisor and all services are provided on an execution-only basis. This communication is not an offer or solicitation to enter into a transaction and shall not be construed as such.

IG is a trading name of IG Limited a company registered at 2702 & 2703 Level 27, Tower 2, Al Fattan Currency House, DIFC, Dubai, United Arab Emirates. IG is authorised and regulated by the Dubai Financial Services Authority (DFSA) under reference No. F001780.

The information on this site is not directed at residents of the United States, Belgium or any particular country outside the UAE 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.