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

Global markets have been on the rise, yet with downtrends in place, there is a good chance we will see the sellers come back into play once again.

IG Analyst

Publication date : 2018-12-13T10:25:42+0000

Stock exchange trading

Source: Bloomberg

FTSE 100 regains ground, yet further downside looks likely

The FTSE 100 is continuing its ascent, in a week that has seen the index enjoy a relatively calm trend despite all the political upheaval.

We look likely to continue pushing upwards, but the likeliness is that this is a retracement of the sell-off from the 7146 level. As such, until we break through that 7146 level, there is a good chance that this is a retracement before we turn lower again.

FTSE 100 chart

FTSE 100 chart

FTSE 100 chart

DAX rebound unlikely to last

The DAX is similarly climbing higher within a downtrend, with the price having hit the trendline resistance.

There is a very good chance we will see the market turn lower before long, in a bid to carry on the downtrend. As such, while we could see further short-term upside, a bearish outlook remains in play for the medium term. A break through the 11,568 level would be required to negate that view.

DAX chart

DAX chart

DAX chart

Dow resurgence expected to be fleeting

The Dow Jones is also strengthening within a downtrend, with the recent break below the 24,243 level providing a clue that the current rally is likely to be a retracement of the 26,071-23,877 sell-off.

Watch for a break below the most recent swing low to signify the beginning of the next leg lower. That level is currently 24,243. A break through the recent high of 26,071 is required to negate the wider bearish outlook.

Dow Jones chart

Dow Jones chart

Dow Jones 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.