CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Please ensure you fully understand the risks involved. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Please ensure you fully understand the risks involved.

Levels to watch: FTSE, DAX and Dow

The bulls are back in charge, as the expected rally is finally coming to fruition across the board.

IG Analyst

Publication date : 2017-05-04T09:55:44+0100

German stock exchange

Source: Bloomberg

FTSE breaking into more bullish structure

The FTSE 100 has broken through 7265 this morning, heightening the chance that we have seen the end of the sell-off. With that move, we now have higher highs and higher lows on an intraday basis.

For greater confidence an hourly close above 7304 would point towards a push back into the all-time highs of 7448. For now, we are seeing tentative signs of that coming to fruition, and as such a bullish outlook is in play unless we break below 7220.

FTSE chart

FTSE chart

FTSE chart

DAX continues to push higher

The DAX has pushed onwards once more this morning, in what has been a very positive 24-hours for the index. Yesterday’s pullback provided us with a cheaper area to get in as expected.

However, we are now seeing the index surging higher in more of a breakout style rather than the gradual moves seen over the past week. As such, further gains seem likely from here, with no resistance up ahead. A break back below 12,476 would be required to negate this bullish view.

DAX chart

DAX chart

DAX chart

Dow begins bullish breakout

The Dow Jones finally has shown its true colours, with price rallying out of a descending channel and breaking through the 20,959 swing high. This gives me the confidence that we are set for a surge higher for the index. Of course we need to consider tomorrow’s jobs report as a driver of volatility. However, all things remaining equal, the chart looks primed for a strong surge higher and renewed uptrend.

With that in mind, further gains are expected from here. A break and hourly close back below 20,873 would be required to negate that view.

Dow Jones chart

Dow Jones chart

Dow Jones chart

This information has been prepared by IG, a trading name of IG Australia Pty 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.

Find articles by writer

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You do not own or have any interest in the underlying asset. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. Please consider the Margin Trading Product Disclosure Statement (PDS), Risk Disclosure Notice and Target Market Determination before entering into any CFD transaction with us.

The value of shares, ETFs and ETCs bought through an IG share trading account can fall as well as rise, which could mean getting back less than you originally put in. Past performance is no guarantee of future results.

Please ensure you fully understand the risks and take care to manage your exposure.

The information on this website is prepared without considering your objectives, financial situation or needs. Consequently, you should consider the information in light of your objectives, financial situation and needs.

This website is operated by IG Australia Pty Ltd. IG Australia Pty Ltd is located on Level 32, Queen & Collins, 376-390 Collins Street, Melbourne, VIC 3000. ABN 93 096 585 410, Australian Financial Services Licence No. 515106. Derivatives Issuer Licence in New Zealand FSP No. 684191, NZBN 9429047618251.

The information on this site is not directed at residents of the United States or any particular country outside Australia or New Zealand 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.