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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 expected to rally despite overnight weakness

FTSE 100, DAX and Dow drift lower overnight, yet recent bullish trends point to further upside.

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FTSE 100 expected to turn higher before long

The FTSE 100 is continuing to lose ground, following on from Monday’s rally into 7259. The market has been drifting lower since, with the intraday creation of lower highs and lows signalling the potential for further downside.

However, given the uptrend seen throughout the past fortnight, it is likely that this period of weakness is a precursor to further gains. As such, while we could see further short-term downside, it is viewed as a retracement of the 7110-7259 rally unless we see a break below that 7110 low.

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

DAX drifts lower, yet bullish trend remains

The DAX has been drifting lower overnight, following on from yet another bullish session yesterday.

The recent uptrend looks likely to persist given the shallow nature of this decline, with another strong move higher seemingly on the cards. As such, this pullback should be seen as a buying opportunity, with this bullish view only negated if we see a break below 12,387.

DAX chart Source: ProRealTime
DAX chart Source: ProRealTime

Dow declines bring price into trendline support

The Dow Jones has similarly drifted lower overnight, with the price hitting an ascending trendline in the process.

The uptrend seen over the past week signals a high likeliness of further gains, with a break below 26,678 required to negate this bullish outlook.

Dow Jones chart Source: ProRealTime
Dow Jones chart Source: ProRealTime

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.

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