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 and US indices appear to be heading in alternate directions, with the FTSE and DAX looking increasingly bearish, as the Dow flounders.

IG Analyst

Publication date : 2017-03-30T08:54:52+0100

German stock exchange

Source: Bloomberg

FTSE rallying after overnight consolidation

The FTSE 100 is pushing higher off the back of a short-term pullback overnight, with the price heading towards yesterday’s high of 7385. An hourly close above that level would provide a bullish signal for another leg higher.

Despite the price trading within a typically bearish wedge pattern, such a breakout would largely negate the formation. Conversely, a failure to break through 7386, followed by an hourly close below 7367, would provide a bearish outlook for a move back into trendline support (currently 7334).

FTSE chart

FTSE chart

FTSE chart

DAX pullback unlikely to last

The DAX is moving lower this morning, following a bullish triangle breakout overnight. For now, the trendline support is being respected, yet as long as we do not fall below 12,164, this pullback is seen as a buying opportunity.

It is worth noting the huge resistance level up ahead at 12,408, yet for now we look likely to continue gains until we get to that area. A break back below 12,164 would provide us with a warning sign of a potential impending period of weakness.

DAX chart

DAX chart

DAX chart

Dow continues to lag Europe

The Dow Jones remains a laggard among the indices, with the price trending lower since the 20,735 high on Tuesday evening. We have seen trendline resistance respected in that time, with the price needing to break through the 200-hour simple moving average (SMA) and trendline resistance if we are to see a resurgence.

Ultimately, we would need an hourly close above 20,735 to bring back a more bullish view for the index. Until then, this drift lower looks likely to continue.

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.