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.

Levels to watch: FTSE 100, DAX and Dow

Stocks are on the rise, with the FTSE 100 breaking through key resistance. However, the DAX remains at risk following respect of Fibonacci resistance.

FTSE 100 breaks key resistance level to bring bullish signal

The FTSE 100 has managed to break through the 7196 level this week, negating the downtrend that has been in play since the peak of May 2018.

This points towards a wider recovery coming into play, with the recent uptrend expected to continue unless we see a break through the 7064 swing low. As such, further upside looks likely from here, with any short-term downside looking to provide us with a buying opportunity.

DAX turning lower from Fibonacci resistance

The DAX has been rallying sharply throughout the week, with the index reaching and respecting the 76.4% retracement level. Given the previous break below 11,006, it looks likely that we will see the market turn lower once again from here.

The ability to remain below the 76.4% retracement is going to be key, with a break below 11,122 providing confirmation of a looming downward move. Alternately, a break through 11,389 would signal a bullish break for the index.

Dow uptrend to persist yet rally slows overnight

The Dow Jones has managed to break into a new higher high this week, with the index looking likely to continue climbing from here.

Normally a rollover in the moving average convergence divergence (MACD) histogram signals a bearish phase coming into play, yet the fact that we have barely even mustered a retracement has to be seen as a bullish sign. A break below 24,884 would signal a more bearish picture coming into play, but until then, any downside looks like a buying opportunity.

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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