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 100, DAX and Dow

US markets continue to outperform, while the FTSE 100 and DAX trade around crucial resistance zones.

IG Analyst

Publication date : 2017-10-03T09:24:32+0100

German stock exchange

Source: Bloomberg

FTSE 100 turning lower from resistance zone

The FTSE 100 has been seeing some weakness come into play this morning, following a rally into the crucial 7436-7461 resistance zone. This area of resistance encompasses a host of tops seen back in August and September. With that in mind, there is a good chance we could see a pullback from here, with the ability to break through 7461 providing key clues as to where this index is set to move next.

As such, today’s price action will be very telling, with the potential of pullback from here. Alternately, a break through 7461 would indicate a continuation of the recent uptrend.

FTSE 100 chart

FTSE 100 chart

FTSE 100 chart

DAX trading near crucial resistance level

With Germany enjoying a national holiday, the DAX market is not open. However, we allow you to still trade the DAX and given its popularity, it makes sense to look at where things could go from here. The price has rallied towards the crucial 12,954 all-time high, which, if broken, would have significant bullish long-term implications. This is clearly the kind of area where we are either going to break out or see some form of pullback.

With that in mind, it makes sense to look out for either of those possible eventualities. An hourly close above 12,954 would signal a bullish breakout signal. Meanwhile, a move back below the 12,899 level would signal an initial bearish short-term signal for the index.

Germany 30 chart

Germany 30 chart

Germany 30 chart

Dow continues to create new highs

The Dow Jones continues to form new all-time highs, with yesterday seeing an incredible rally for the index.

The intraday charts will be key here, with a bullish outlook remaining in play unless we see a move back below the 22,556 swing low.

Wall Street chart

Wall Street chart

Wall Street 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.