Skip to content

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 in the European indices is not being matched by their US counterpart, with the Dow expected to push higher still.

DAX
Source: Bloomberg

FTSE 100 turning lower from key resistance

The FTSE 100 has begun to weaken from the 7473 mark this morning, in what could be the beginning of a period of weakness for the index.

The ability, or inability, to break through 7473 was always going to be key for the next step, and so far it looks as though we could see a more bearish short-term picture. As such, further downside seems likely, unless we break above 7473.

FTSE 100 chart

DAX falling back after recent gains

The DAX is similarly starting the week on a negative tone, with the failure to follow up on the break through 13,211 subsequently providing a lower low with the move below 13,112.

That signals a likely bearish shift for the short term, with the possibility of moving back towards the 13,007 (61.8%) region. However, given the break above 13,211, this current pullback is seen as a retracement, before we attempt to break higher from this pattern once more.  

DAX chart

Dow continues its ascent

The Dow Jones remains on a remarkably consistent uptrend, following on from the wider 76.4% retracement.

With trendline support coming into play yet again, there is a strong likeliness that we could see another push higher from here. As such, a bullish outlook remains in place, unless the price falls back below 24,313.

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