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 and Dow

Another overnight session full of volatility has seen the Dow push higher yet. With both European and US markets pausing, will we see another strong move higher from here?

FTSE rebounds from major support zone

The FTSE 100 failed to break into a new low yesterday, with the substantial sell-off providing a marginally higher low. A break below that previous low of 6515 would have provided a signal that the 61.8% retracement seen earlier in the week is the limit of the upside potential.

However, given the upside we have seen since, it makes sense to await a resolution from this current pause. Should we rally up through the 6679 level, then it would make sense to start looking for further upside, with a possible ultimate rally into the 76.4% resistance level at 6817. However, until then there is also a chance the downtrend will kick in again, and a break below 6515 would signal that.

Dow trading above key resistance level

The Dow Jones has enjoyed a more clear-cut period of strength, with the downside seen through much of Thursday giving way to another leg higher through the evening.

With the index having moved through the 23,112 resistance level, there is a good chance that we will see another bullish surge if the price doesn’t fall back below the 23,000 mark. If it does, then we would be looking at another retracement coming into play. Either way, if the index doesn’t break below 22,264 then further upside looks likely before long.

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.

Be ready to act on ECB opportunities

Learn how the ECB’s monetary policy announcements affect interest rates and price stability ahead of its next meeting in 22 April 2021.

  • How might the next meeting affect the markets?
  • What are the key rate decisions to watch?
  • Why is the Governing Council announcement important for traders?

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.