CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure. CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure.

FTSE 100, DAX and Dow upside could be limited until we break resistance

FTSE 100, DAX and Dow gain ground, yet further short-term downside could come into play if we don’t break key resistance levels.

FTSE 100 turning higher after brief pullback

The FTSE 100 is on the rise this morning, following a sharp move lower in early trade yesterday. With the stochastic turning higher, there is a good chance we will see some upward momentum in early trade.

However, the relatively shallow nature of this recent pullback means we could see further downside come into play before long. A break through the 6324 level would signal a wider bullish picture coming into play. Until then, there is a good chance of further short-term downside following the recent break below 6219.

DAX starts to strengthen after recent pullback

The DAX has started to turn higher this morning, following a period of weakness from Tuesday's high. There is a good chance we are seeing a retracement of the recent rally from 12,807, yet while the index is turning higher this morning, the medium-sized pullback we have seen does point towards the possibility of another move lower before the bulls come back into play.

This morning has seen the price move back towards the notable 13,199 level, which would bring a more bullish outlook if broken. However, with the index starting to weaken from that point, further short-term downside could come into play from here as we head towards the 61.8% and 76.4% Fibonacci retracement levels. Nevertheless, a wider bullish outlook remains in play unless we see the price break below 12,807.

Dow Jones closes in on key resistance level

The Dow Jones has managed to rise into trendline resistance this morning, with the price pushing towards the key 27,180 resistance level from last Wednesday. Given the current respect of this ascending trendline, there is a chance we could see short-term downside.

However, should that occur, we would likely see another higher low come into play. As such, bullish positions look more attractive on a break through 27,180, or at a deep retracement level of the rally from 26,639. Conversely, a break below that 26,639 level would be required to bring about a more long-lasting bearish picture.

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.

Seize your opportunity

Deal on the world’s stock indices today.

  • Trade on rising or falling markets
  • Get one-point spreads on the FTSE 100
  • Unrivalled 24-hour pricing

See opportunity on an index?

Try a risk-free trade in your demo account, and see whether you’re on to something.

  • Log in to your demo
  • Try a risk-free trade
  • See whether your hunch pays off

See opportunity on an index?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Get spreads from one point on the FTSE 100
  • Trade more 24-hour indices than any other provider
  • Analyse and deal seamlessly on smart, fast charts

See opportunity on an index?

Don’t miss your chance. Log in to take your position.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Friday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.