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 FTSE 100 has moved into a crucial resistance zone, with the DAX also starting to show signs of weakness after yesterday’s surge. Meanwhile, the Dow is starting to look likely to push higher over the near term.

IG Analyst

Publication date : 2018-05-03T09:31:03+0100

Video poster image

FTSE 100 ascendancy hits Fibonacci resistance

The FTSE 100 has continued it’s ascent throughout the week, with the price gradually rising despite recent deep retracements.

With the price having hit the long-term 76.4% retracement (drawn from 7796-6841), alongside a historical zone of resistance, there is a good chance we could see a move lower from here. A break below 7500 would be required to negate the current downtrend. Until then, the creation of higher highs and lows remains in play.

FTSE 100 chart

FTSE 100 chart

FTSE 100 chart

DAX surge could bring near term retracement

The DAX managed to outperform yesterday, with the index gaining 1.3% in the space of an hour.

However, with such a surge comes the chance of a pullback to retrace some of the move. With the price failing to create a new high this morning, a break and hourly close below 12,747 would provide a bearish near-term signal. Such a signal would only provide a short-term retracement outlook, with a Fibonacci drawn from 12,499 to 12,830 coming into play. However, as long as the price remains above 12,747, the potential for another break higher is still relevant.

DAX chart

DAX chart

DAX chart

Dow begins to turn higher once more

The Dow Jones is turning higher this morning after the recent decline towards the crucial 23,804-23,822 support zone.

The failure to break into that zone could be telling as a bullish signal. However, we would ultimately need a break through 24,189 to provide a wider bullish view. Until then, there is a good chance that we will see a rally, if only to retrace part of the 24,189-23,846 decline. Conversely, a break below 23,802 would provide a bearish continuation signal.

Dow Jones chart

Dow Jones chart

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

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.