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

Yesterday’s losses provided the chance for dip buyers on Wall Street, while in Europe, the DAX only saw short-lived selling.

Chris Beauchamp ChrisB_IG
Chief Market Analyst, London

Publication date : 2017-09-26T09:27:46+0100

Price chart

Source: Bloomberg

FTSE 100 dips below 7300

FTSE 100 is dropping back from the highs of the past week, but for now remains in an uptrend from the lows of two weeks ago. A rising trendline from those lows would come into play just below 7260, which would create a higher low and a potential area to add to positions or initiate new longs.

A close below 7250 would then raise the prospect of a test of last Friday’s low at 7233, with 7194 below that. Last week’s high of 7323 is the first target to watch on the upside, followed by 7360, 7400 and 7450.

FTSE 100 price chart

FTSE 100 price chart

FTSE 100 price chart

DAX holds its ground

While US markets have taken relatively heavy losses, the DAX has barely moved. The 12,550 area has acted as support since last Thursday, and then 12,500 below this comes into play too. A bounce from current levels needs to move through 12,660, since this was resistance last week and also back in early July (shaded area on chart).

As noted yesterday, the strength of the early September breakout means that we could see a drop back towards 12,300 and still be in an uptrend, DAX has yet to create a meaningful higher low.

DAX price chart

DAX price chart

DAX price chart

Dow finally sees a dip

The news surrounding North Korea knocked Dow Jones back sharply, but a dip down towards 22,200 brought out plenty of buying pressure.

The ongoing rally looks to have managed the pullback from overbought levels quite nicely, and so we look for a push back to 22,400 and higher. A turn lower would first target yesterday’s low at 22,216, followed by 22,179 and then 22,086.

Dow price chart

Dow price chart

Dow 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.