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

Indices continue pushing, with new highs being set for many. With a short-term pullback seen this morning, this could be a good buying opportunity.

IG Analyst

Publication date : 2017-11-07T09:20:10+0000

DAX

Source: Bloomberg

FTSE 100 retracing after push into new highs

The FTSE 100 managed to break to a new five-month high overnight, pushing above the key 7565 level once again. We are seeing some weakness come into play here, yet further upside seems a likely eventuality.

The key support level to note is 7526. As long as that is not broken, any weakness would be seen as a buying opportunity.

FTSE 100 chart

FTSE 100 chart

FTSE 100 chart

DAX weakness brings buying opportunity

The DAX pushed into new highs overnight, with the index retracing somewhat this current hour. This provides another buying opportunity, with any short-term downside likely to be greeted by further gains.

So far, we have hit the 50% mark, yet any greater retracement would be a buying opportunity. This bullish view remains until the price breaks back below 13,453.

DAX chart

DAX chart

DAX chart

Dow channeling higher into new highs

The Dow Jones is on a clear upward trajectory, with the price maintaining a consistent pace over the past 24 hours. We are likely to see further upside, but beware of a possible retracement.

A break below trendline support would point towards the 23,554 level as near-term support. However, the price would have to break below 23,469 to negate the current bullish outlook.

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.