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 100, DAX and Dow

Overnight losses across the board for European and US indices look to provide a possible buying opportunity ahead.

IG Analyst

Publication date : 2017-11-23T09:37:39+0000

German stock exchange

Source: Bloomberg

FTSE 100 retraces into 76.4% Fibonacci support

The FTSE 100 broke lower overnight following a wider (daily timeframe) pullback into the 61.8%. There is a good chance that we have seen an end of that wider sell-off, and we will need to remain above 7349 to remain on track to recover from here.

With the price pulling back to the 76.4% retracement, there is a good chance we could start to see the FTSE 100 turn higher from here. Conversely, a break back below 7349 would point towards a possible move into the wider 76.4% Fibonacci, at 7288.

FTSE 100 chart

FTSE 100 chart

FTSE 100 chart

DAX retracement points towards possible rebound

The DAX has also dropped back into the 76.4% following a week of gains. The creation of higher highs and higher lows over that week does provide a strong chance that the current 76.4% retracement will mark the low of the day.

As long as the price does not break below 12,857, a bullish outlook is in place for a move back up above 13,210.

DAX chart

DAX chart

DAX chart

Dow uptrend remains intact despite sell-off

The Dow Jones tells a similar story to the FTSE 100 and DAX, with the price also pulling back towards the 76.4% level at 23,460.

The ability to remain above the 23,409 swing low is key to remaining within this recent uptrend. As such, a bullish outlook remains in place, with further upside expected from here.

Dow Jones chart

Dow Jones chart

Dow Jones chart

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