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

Short-term weakness for stocks provides us with a potential buying opportunity.

FTSE 100 pullback brings potential buying opportunity

The FTSE 100 is weakening in early trade, coming off the back of a short-term resurgence through the latter part of last week.

While there is a good chance that this recent resurgence is a retracement of the sell-off from 7263, there is likely to be further upside to come. Thus, the pullback we are currently seeing is expected to be fleeting, with a break below 7095 required to bring about the bearish view once more. Until then, another leg higher looks likely before long.

DAX turning lower from key resistance level

The DAX has enjoyed a good run of late, with the price seemingly respecting this 11,693 support level dating back to early-2018.

The ability to break through that level is key to retaining the bullish sentiment that has dominated the past three weeks. Keep an eye out for the 11,586 swing low, which provides the first hurdle that needs to be overcome if a more bearish picture is to emerge.

Dow in retracement mode

The Dow Jones has similarly been moving lower since pushing higher last week, with the index looking likely to drift lower over the near term.

However, looking at recent price action, we seem to have bottomed out, and thus a push through the 26,168 peak looks likely before long. As such, any further downside looks like a buying opportunity unless we see a break below 25,911.

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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