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

European markets recover from significant losses, while Dow Jones continues to push on into new territory.

IG Analyst

Publication date : 2017-03-01T09:50:45+0000

Trader

Source: Bloomberg

FTSE breaking higher once more

It seems the FTSE weakness could be somewhat short lived, with the index breaking higher once more this morning, thanks to a weaker pound. So far, the price has rallied into the 7310 resistance, and a break above that level would point towards a push through 7323 before long.

As such, the signs are there that we are likely to resume the uptrend. We would need price to break back below 7251 to become less bullish. Until then, buying retracements seems sensible.

FTSE chart

FTSE chart

FTSE chart

DAX breaks higher to negate signs of weakness

The DAX has broken higher through the 11,861 resistance level, subsequently sparking a sharp resurgence for the index. Given that we are now creating higher highs and higher lows, the index is looking increasingly bullish, with traders likely to buy on dips.

A break through 12,032 would provide a significantly more bullish view. Conversely, a break back below 11,780 would provide a more bearish signal.

DAX chart

DAX chart

DAX chart

Dow continues to push higher

Dow Jones managed to create new all-time highs yesterday, following a break through 20,845. Crucially this highlighted that, despite a triangle in play, the key event required for a more bearish picture was a break below 20,769, which did not occur.

With the price having pulled back towards the 20,845 area, we are now pushing higher, with a bullish outlook remaining in play as long as we remain above 20,837.

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.