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

Weakness across the FTSE 100, DAX and Dow raises the possibility of a pullback following recent gains.

IG Analyst

Publication date : 2018-07-19T09:20:06+0100

Video poster image

FTSE 100 showing signs of potential short-term weakness

The FTSE 100 has been struggling to break through the 76.4% retracement since initially looking like it was going to break towards the top of the range (7706).

This could still happen, yet with the price slowing in its ascent, there’s also a risk of a bearish move if we see an hourly close below the 7648 mark. A break above 7687 would signal a continuation of this upside, with trendline resistance and the range top up ahead.

FTSE 100 price chart

FTSE 100 price chart

FTSE 100 price chart

DAX pulling back amid recent ascent

The DAX has been weakening at the start of the day, in what could be the beginning of a pullback.

The index would likely begin to retrace some of the strong gains seen on Tuesday in the event that we see an hourly close below 12,702 support. Until then, the short-term uptrend remains intact.

DAX price chart

DAX price chart

DAX price chart

Dow falls towards notable near-term swing low

The Dow Jones is also turning lower, with the creation of higher lows coming into question with a possible break below 25,098.

Should that occur, we would be looking for a period of near-term weakness to come into play. But until we see that break below 25,098, a bullish reversal is still a possibility.

Dow Jones price chart

Dow Jones price chart

Dow Jones price 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.