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

Levels to watch: FTSE, DAX and Dow

Recent losses for the indices resulted in what looks like pullbacks for the FTSE, DAX and Dow. This could provide us with bullish reversal opportunities.

IG Analyst

Publication date : 2017-07-25T09:25:34+0100

Wall Street

Source: Bloomberg

FTSE higher following yesterday’s sell-off

The FTSE is punching higher today, in the wake of yesterday’s sharp move lower. Crucially, we saw the price tumble back into the vital swing low of 7357 before pushing higher from the brink. We still have a lot of room to regain, and thus further upside seems likely from here.

Given we are now faced with flat-lining lows rather than higher lows, it throws a question mark on whether it will have enough strength to break through the 7516 mark. However, until we break back below 7357, there is a good chance we will see the bulls remain in charge to continue the resurgence we have seen so far this month.

FTSE chart

FTSE chart

FTSE chart

DAX turning higher from 76.4% retracement

The DAX pulled back into the 76.4% retracement yesterday, bringing a bullish opportunity. As the wider uptrend remains intact, a bullish outlook is in play here. A break below 11,942 would be required to negate this view.

Watch out for an hourly close above 12,256 to spark near-term strength given the intraday inverse head and shoulders pattern it would complete. Also keep an eye on the symmetrical triangle seen on the stochastic oscillator. A break higher from there could spark a surge in the price action.

DAX chart

DAX chart

DAX chart

Dow expected to turn higher following pullback

The Dow Jones has moved into the 76.4% retracement twice in the last two trading days, with the 100-period simple moving average (SMA) also providing reliable support.

With that in mind, any move into the 21,515 level would look particularly attractive for longs. We would need to see a break through 21,466 to negate that bullish short-term bias.

Dow Jones chart

Dow Jones chart

Dow Jones chart

IGA, may distribute information/research produced by its respective foreign marketing partners within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

This information/research prepared by IGA or IG Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. 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. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

See important Research Disclaimer.

Find articles by writer

Disclaimer:

All forms of investments carry risks and trading CFDs may not be suitable for everyone. CFDs are leveraged instruments and can result in losses that exceed deposits, so please ensure that you fully understand, and are aware of, the risks and costs involved. Refer to the Risk Disclosure Statement and Risk Fact Sheet.

IG Asia Pte Ltd (Co.Reg.No. 200510021K) is regulated by the Monetary Authority of Singapore and holds a capital markets services licence for dealing in capital markets products that are over-the-counter derivatives contracts and is an exempt financial adviser.

IG provides an execution-only service. The information in this advertisement does not contain (and should not be construed as containing) investment advice or an investment recommendation, 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. You should consider your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

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

This advertisement has not been reviewed by the Monetary Authority of Singapore.