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

The indices are gradually gaining ground, yet with wider downtrends still intact, there are still major hurdles that need to be overcome to signal a bullish medium-term picture.

FTSE 100 continues to gain ground

The FTSE 100 has been grinding higher over recent trading days and today is no different, with the index hitting a new two-month high this week.

The rally past Fibonacci resistance at 7000 points towards the possibility that this move could see us break out of the downtrend with a move above 7196. However, for now the intraday picture simply tells us that we could see further upside as long as we do not break below the 7000 swing low.

DAX gaining ground after recent breakdown

The DAX has been threatening to break sharply lower, following the fall out of a rising wedge pattern. A drop below 11,004 would have provided that notable bearish signal.

However, we are seeing the index move away from that support threshold and towards the resistance zone around 11,308. A break above there would signal a bullish continuation in play.

Dow continues gradual ascent

The Dow Jones pushed onwards yesterday, with the gradual ascent of recent over the past week continuing to play out. The rally through the 76.4% retracement and 25,000 handle points towards a heightened chance of us breaking out of this wider downtrend by rallying through 26,072.

However, as is evident with the trendlines in play, the index appears to be trading within a rising wedge formation. Watch for a break through trendline resistance to add greater confidence that this uptrend has further legs. Alternately, a break below trendline support and the 24,835 level would start building a more bearish picture.

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

Take a position on indices

Deal on the world’s major stock indices today.

  • Trade the lowest Wall Street spreads on the market
  • 1-point spread on the FTSE 100 and Germany 40
  • The only provider to offer 24-hour pricing

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. All share prices are delayed by at least 20 minutes. Prices are indicative only.

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.