We want to clarify that IG International does not have an official Line account at this time. We have not established any official presence on Line messaging platform. Therefore, any accounts claiming to represent IG International on Line are unauthorized and should be considered as fake.
CFDs are complex instruments. 70% of retail client accounts lose money when trading CFDs, with this investment provider. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money. CFDs are complex instruments. 70% of retail client accounts lose money when trading CFDs, with this investment provider. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money.

Levels to watch: FTSE 100, DAX and Dow

European and US indices are consolidating, with a rising chance that there will be a bullish breakout starting to build.

IG Analyst

Publication date : 2018-10-16T09:26:35+0100

Video poster image

FTSE 100 consolidates within triangle formation

The FTSE 100 has been trading within a triangle formation since declining sharply throughout last week.

With the price approaching the apex of this pattern, there is a strong chance we will see a breakout today. As such, watch for a break through either 7075 or 6954 as a signal of where we go from here.

FTSE 100 price chart

FTSE 100 price chart

FTSE 100 price chart

DAX approaching crucial bullish breakout level

The DAX has started to regain ground, with the price approaching a crucial double bottom neckline of 11,711.

Should we post an hourly close above that level, it would point towards a bullish phase coming into play following recent losses. As such, look out for such a break as a signal of a reversal. Until then, continued consolidation looks like a distinct possibility.

DAX price chart

DAX price chart

DAX price chart

Dow finding support on ascending trendline

The Dow Jones has moved back into trendline support in a clear phase of consolidation since tumbling lower last week. The ability to remain above trendline support will be key in determining whether we are going to push upwards from here.

As such, much like the FTSE triangle, the ability to push through the first swing high (25,545) will be key in signaling an impending upward move for the Dow. To the downside, watch out for a break below the previous low of 24,896 as a precursor to another leg lower.

Dow Jones price chart

Dow Jones price chart

Dow Jones price chart

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.

Find articles by writer

The risks of loss from investing in CFDs can be substantial and the value of your investments may fluctuate. 70% of retail client accounts lose money when trading CFDs, with this investment provider. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how this product works, and whether you can afford to take the high risk of losing your money.

CFD Accounts provided by IG International Limited. IG International Limited is licensed to conduct investment business and digital asset business by the Bermuda Monetary Authority.

IG provides an execution-only service. The information in this site does not contain (and should not be construed as containing) investment advice or an investment recommendation, or an offer of or solicitation for 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.

The information on this site is not directed at residents of the United States 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.

IG International Limited is part of the IG Group and its ultimate parent company is IG Group Holdings Plc. IG International Limited receives services from other members of the IG Group including IG Markets Limited.