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

European markets are outperforming their US counterparts, with the FTSE 100 and DAX pushing upwards. However, there are signs that point towards a potential reversal of these fortunes.

IG Analyst

Publication date : 2018-11-15T09:31:42+0000

Trader

Source: Bloomberg

FTSE 100 retains bearish outlook despite rebound

The FTSE 100 is pushing upwards, with a weakening pound helping drive UK stocks higher.

Coming off the back of a rising wedge formation, there is a strong chance we will see the index falter once more rather than rally through the 7175 peak set on Monday.

FTSE 100 chart

FTSE 100 chart

FTSE 100 chart

DAX regains ground within recent downturn

The DAX is also regaining ground in the wake of recent declines.

We have seen significant volatility coming into play given everything that is happening in relation to Brexit, Italy and German growth. However, given the wider bearish trend, and lower highs set throughout early November, there is a strong chance that this rebound will fall short. As such, a bearish outlook remains in play unless we see a rally through 11,609 resistance.

DAX chart

DAX chart

DAX chart

Dow tumbles into Fibonacci support

The Dow Jones has been consistently selling off this week, with price falling into the 61.8% retracement overnight.

The wider context does show this pullback to be a likely retracement of the 24,120-26,277 rally, As such, there is a strong possibility that the bulls will come in again around the 24,944 or 24,629 levels. A break below 24,944 would be required to bring about a more bearish wider outlook for the index.

Dow Jones chart

Dow Jones chart

Dow Jones chart

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