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 are finding it hard to hold their ground at present, with key trendlines holding back progress and a new lower high potentially appearing on the Dow.

Chris Beauchamp ChrisB_IG
Chief Market Analyst, London

Publication date : 2017-08-24T09:33:28+0100

The City of London

Source: Bloomberg

FTSE 100 struggling to break resistance at 7410

The FTSE 100 continues to hold near the descending trendline off the June highs, but so far has shown little ability to break above it and take out the 7410 resistance level.

A failure to move above here raises the prospect of a return to 7300 and the vital support area that has held back any further losses since July. A daily close below this level is required to open the way to 7090.

FTSE chart

FTSE chart

FTSE chart

DAX faces fresh selling

Since the beginning of the month pushes back to 12,300 have been met by fresh selling on the DAX. Yesterday’s bounce didn’t even get that far, and once again it was the downtrend off the June high that was the real catalyst for fresh selling.

The next levels to watch out for are 12,124 and then 12,032, and beyond that the August low at 11,923. A daily close above 12,310 would be the real sign that the index has broken higher.

DAX chart

DAX chart

DAX chart

Dow to develop another lower high?

The worrying thing for Dow Jones bulls at present is the potential development of yet another lower high, after the bounce from 10-15 August created its own following the all-time high on 8 August.

A continuation of losses could find support at 21,786, and then down to 21,600, and then on to the rising trendline, which could see support develop around 21,500.

Dow Jones chart

Dow Jones chart

Dow Jones chart

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