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 decline for the indices has been arrested for now, with the price heading back into key resistance. This provides us with clear hurdles to overcome to bring back the bullish outlook.

IG Analyst

Publication date : 2017-11-14T09:09:16+0000

Wall Street

Source: Bloomberg

FTSE 100 regaining ground after sell-off

The FTSE 100 has started to regain ground this morning, coming off the back of a strong sell-off yesterday. That move lower brought the price back below the 7428 support level, providing a strong possibility of a wider sell-off before long.

However, for now, we are seeing the price move back towards trendline and simple moving average (SMA) resistance. As such, while we could see further short-term upside, a break above 7475 would be required to provide confidence of a bullish move for the index.

FTSE 100 chart

FTSE 100 chart

FTSE 100 chart

DAX back into trendline resistance

The DAX has managed to regain ground overnight, with the price moving into trendline resistance. The confluence of the 76.4% retracement, trendline, and SMA (50-hour) resistance provides us with a clear hurdle to overcome.

We would need to see a break above 13,164 to provide us with a bullish outlook. Until then, the reaction to the 76.4% retracement, trendline, and SMA confluence is going to be key to determining where we go from here.

DAX chart

DAX chart

DAX chart

Dow attempting to break key resistance zone

The Dow Jones is back at trendline resistance, following a move back into the 23,324 support zone.

With the price attempting to break higher, the key is whether we see an hourly close above 23,460, to signal a bullish shift for the index.

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.