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

FTSE, DAX and Dow all going strong with bullish outlooks.

IG Analyst

Publication date : 2017-02-22T11:46:16+0000

Wall Street

Source: Bloomberg

FTSE breaking higher from Fib support

The FTSE is heading higher this morning, following a retracement into the 76.4% retracement earlier this week. This provided us with a great buying opportunity to go long at the 7268, with a strong risk to reward resulting from the deep pullback.

Given that price has remained well above the 7251 support level, a bullish outlook remains in play, with a break back through 7323 looking increasingly likely.

FTSE chart

FTSE chart

FTSE chart

DAX breaks to new 21-month high

The DAX has broken higher in a pretty incredible fashion, with the break back through the key 11,893 resistance level proving a strong buy sign. This trend is clearly defined, and with the next major resistance level all the way up at 12,400, there is certainly room for manoeuvre here.

With that in mind, buying on retracements looks like the best option here. We would need to negate the creation of higher highs and higher lows to invalidate that view. Thus, as long as price remains above 11,797, a bullish outlook remains in play.

DAX chart

DAX chart

DAX chart

Dow uptrend remains in play

The Dow is trying to break higher from a symmetrical triangle this morning, following on from yet another move to the upside for the index yesterday.

What we are looking for here is an hourly close above 20,757 as a buy signal. Or else, a deep retracement into the 20,654-20,662 zone for longs. Either way, bullish positions are favoured until we see a break below the previous low at 20,622.

Dow chart

Dow chart

Dow chart

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