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

US markets continue to outperform, while the FTSE 100 and DAX trade around crucial resistance zones.

IG Analyst

Publication date : 2017-10-03T09:24:38+0100

German stock exchange

Source: Bloomberg

FTSE 100 turning lower from resistance zone

The FTSE 100 has been seeing some weakness come into play this morning, following a rally into the crucial 7436-7461 resistance zone. This area of resistance encompasses a host of tops seen back in August and September. With that in mind, there is a good chance we could see a pullback from here, with the ability to break through 7461 providing key clues as to where this index is set to move next.

As such, today’s price action will be very telling, with the potential of pullback from here. Alternately, a break through 7461 would indicate a continuation of the recent uptrend.

FTSE 100 chart

FTSE 100 chart

FTSE 100 chart

DAX trading near crucial resistance level

With Germany enjoying a national holiday, the DAX market is not open. However, we allow you to still trade the DAX and given its popularity, it makes sense to look at where things could go from here. The price has rallied towards the crucial 12,954 all-time high, which, if broken, would have significant bullish long-term implications. This is clearly the kind of area where we are either going to break out or see some form of pullback.

With that in mind, it makes sense to look out for either of those possible eventualities. An hourly close above 12,954 would signal a bullish breakout signal. Meanwhile, a move back below the 12,899 level would signal an initial bearish short-term signal for the index.

Germany 30 chart

Germany 30 chart

Germany 30 chart

Dow continues to create new highs

The Dow Jones continues to form new all-time highs, with yesterday seeing an incredible rally for the index.

The intraday charts will be key here, with a bullish outlook remaining in play unless we see a move back below the 22,556 swing low.

Wall Street chart

Wall Street chart

Wall Street 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.