CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved.

Levels to watch: FTSE, DAX and Dow

European markets continue to outperform the US, with the DAX looking particularly interesting after a triangle breakout.

IG Analyst

Publication date : 2017-06-01T08:51:30+0100

Wall Street

Source: Bloomberg

FTSE continues to gain

The FTSE has remained within its uptrend with the price managing to break through 7556 resistance yesterday, albeit temporarily.

The current rising wedge pattern points towards the potential for this market to pull back soon. Yet, until we see a break below the first swing low (7496), it seems likely we will see further upside.

FTSE chart

FTSE chart

FTSE chart

DAX triangle breakout points to further upside

The DAX broke through trendline resistance yesterday, providing the basis for a potential push higher from here. That would conform to the wider uptrend, yet it could be sensible to wait for an hourly close above 12,712 for confirmation.

We would need a break back below 12,530 to negate this bullish outlook.

DAX chart

DAX chart

DAX chart

Dow turning lower from Fibonacci resistance

The Dow Jones has managed to claw back some ground following sharp losses yesterday. However, we have since seen those gains falter at the 76.4% retracement, with the downtrend remaining intact.

With that in mind, a bearish short term view remains, unless we manage to break through 21,067 resistance.

Dow Jones chart

Dow Jones chart

Dow Jones chart

The information 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 Bank S.A. 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 and as such is considered to be a marketing communication.

Find an article

Find articles by writer

CFDS are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved.

This website is owned and operated by IG Bank S.A. Registered address at 42 Rue du Rhone, 1204 Geneva, authorised and regulated by FINMA.

The information on this site is not directed at residents of the United States and Belgium, or any particular country outside Switzerland 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.