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

Recent gains have been tempered somewhat overnight, yet with European indices near upside breakout levels, we could see a further outperformance in the FTSE 100 and DAX.

IG Analyst

Publication date : 2018-04-12T09:22:16+0100

Video poster image

FTSE 100 consolidating around key resistance

The FTSE 100 managed to break above the 7256 mark earlier in the week, hitting the highest level in over a month. This threshold is important for the index and the consolidation we are currently seeing is a reflection of that.

With the price breaking below the ascending trendline at the bottom of a rising wedge, there is a possibility of a retracement from here. As such, watch for an hourly close above 7272 to signal a continuation of the recent uptrend, where 7340 represents the next big hurdle to the upside.

FTSE 100 price chart

FTSE 100 price chart

FTSE 100 price chart

DAX pulls back from breakout level

The DAX moved within touching distance of the crucial 12,477 resistance level on Tuesday, with the price subsequently pulling back to below the lower threshold of a rising wedge. This points towards the potential of further downside, given the wider creation of lower highs.

However, for us to start looking at this index in a more bearish manner, the 12,201 level needs to be broken. Until then, there remains a good chance we will head back towards 12,477, which, if broken, would signal a more bullish shift for the index.

DAX price chart

DAX price chart

DAX price chart

See all indices live prices

Learn more about trading indices with IG

Dow back into trendline support

The Dow Jones has dropped back into trendline support once more this morning, with near-term price action taking on a symmetrical triangle shape consisting of lower highs and higher lows.

The wider downtrend points towards a likely break lower, with any rally coming into trendline and horizontal resistance (24,637) pretty quickly. A break below trendline support would provide a near-term sell signal, yet a move below 23,738 would provide greater confidence of a protracted bearish move for the pair.

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.