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, DAX and Dow

Today looks like it could be a positive day for indices, with a strong open leading to a slight pullback. Will that pullback extend or will the indices push higher once more?

IG Analyst

Publication date : 2017-01-10T09:16:07+0000

Data

Source: Bloomberg

FTSE breaks to new highs

The FTSE 100 has charged higher this morning, breaking through the key 7244 resistance level. We are seeing the index pull back now, yet this simply gives us another bite at the cherry for longs.

Of particular interest is the 7244 level, which represents not only the 50% retracement, but also the previous highs. As such, a bullish outlook remains in play, with a break below 7223 required to negate this view.

FTSE

FTSE

FTSE

DAX continues to respect range

The DAX is rallying sharply this morning, following a fall into the 11,530 support zone. The index has broken through the double-bottom neckline of 11,569 this morning, with the current candle clearly coming back to that level as new support.

Should that hold, we are looking for another bounce higher for the index. Even if we manage to break and hold below that level, it would simply point towards a retracement of the rally from 11,525, where 11,550 becomes interesting for longs.

DAX

DAX

DAX

Dow rallying from 76.4% retracement

The Dow Jones is moving higher once more this morning, following on from a retracement into the 76.4% level (19,871) and trendline support. Given the continued creation of higher highs and higher lows, we would need to see a break back below 19,832 to negate the bullish view.

Until then, further gains seem likely, with the 20,000 mark becoming increasingly likely to be overcome.

Dow Jones

Dow Jones

Dow Jones

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.