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 100, DAX and Dow

Indices rebound after last week’s sell-off, yet with near-term resistance appearing, we will need further gains to provide a more bullish weekly view.

IG Analyst

Publication date : 2018-03-26T09:24:12+0100

Trader

Source: Bloomberg

FTSE 100 rebounds towards double bottom neckline

The FTSE 100 has moved sharply higher this morning, following on from last week’s deterioration.

There is a good chance we will see a more protracted rebound, with the ability to break above 6953 the key to providing a bullish short-term view. Until then, there is still a chance of further downside.

FTSE 100 chart

FTSE 100 chart

DAX gaining ground from key support

The DAX has been turning higher following a drop into the ascending trendline dating back to early February.

There is a strong chance that we will see the price retrace the wider sell-off, with a bullish confirmation coming with an hourly candle closed above the 12,003 swing high. On the flip side, should we see an hourly close below 11,756 support, this would point towards a bearish continuation picture.

DAX chart

DAX chart

Will Dow rebound last?

The Dow Jones has seen some gains coming into play this morning, following a drop below the 76.4% retracement.

That inability to respect the Fibonacci support points towards the potential for further downside. However, whether we start to see a more bullish short-term view is reliant upon the ability to post an hourly close above 24,110.

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.