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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.

FTSE 100, DAX and Dow all on the up

Indices continue to be buoyed by hopes that trade wars are beginning to cool, but there is still work to be done to indicate more gains are on the way.

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FTSE 100 on a high after week-long rally

The FTSE 100 has rallied throughout the week, but now faces the crucial test: can it push on through recent resistance?

This is to be found first around 7215, the highs from last week, while above this the 7300 area from early August comes into play. Clearance of these levels would provide a much more bullish view. This may not be accomplished quickly, and drops towards 7140 may find rising trendline support from the 26 August low.

FTSE 100 price chart Source: ProRealTime
FTSE 100 price chart Source: ProRealTime

DAX returns to critical level

For the DAX, the crucial test has already arrived. It has rallied to the 11,850 zone that held back progress throughout August, and in early trading it is already putting on solid gains. A daily close above 11,850 clears the path to further upside, with 12,400 and 12,600 the next areas to watch.

Higher lows have been seen since Monday, so a push below 11,550 would be needed to negate the bullish view.

DAX price chart Source: ProRealTime
DAX price chart Source: ProRealTime

Dow pushes above 100-day moving average

The Dow Jones has opened above the 100-day simple moving average (SMA) for the first time since 2 August, and looks set to push higher.

Rising trendline support from Monday’s lows comes in around 26,000 so we could see this tested in due course, especially given the level of volatility seen this month. Further gains target 26,780 and then 27,420.

Dow price chart Source: ProRealTime
Dow price chart Source: ProRealTime

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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.

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