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

The indices continue to push higher, with market expectation of a positive vote on the US tax reforms providing a boost for stocks.

IG Analyst

Publication date : 2017-12-19T09:02:31+0000

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FTSE 100 pushing up once more

The FTSE 100 is turning higher once again this morning, following on from a small overnight pullback. The promise of a US tax reform push this week has boosted stocks, and this looks set to continue.

With the price breaking through 7546 this morning, it looks likely we are set for another day of gains, where the ability to remain above 7535 will prove key to that view. A break below there would point towards a wider retracement of the move up from 7432. Until then, further upside looks likely from here.

FTSE 100 chart

FTSE 100 chart

FTSE 100 chart

DAX seeks further gains after overnight consolidation

The DAX is moving higher once again this morning, following on from a period of flat consolidation overnight.

A similar story with the FTSE 100 points towards further upside, as long as the price does not break below 13,298. The wider picture points towards a move into the previous record high of 13,533, with the US tax and German political pictures hopefully carrying us through into those highs.

DAX chart

DAX chart

DAX chart

Further upside likely for Dow

The Dow Jones is similarly pushing onwards, with the price setting new record highs on a regular basis.

The ability to maintain price action above 24,771 will be key to providing a short-term bullish view, with a break below that level pointing towards a retracement of the rally from 24,509. Until then, further upside looks likely from here.

Dow Jones chart

Dow Jones chart

Dow Jones chart

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