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 US markets continue to dominate, with consolidation in the FTSE 100 and DAX continuing, despite fresh highs for the Dow.

IG Analyst

Publication date : 2018-01-16T09:21:27+0000

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FTSE 100 challenging key support level

The FTSE 100 is testing the 7764 support level once again this morning, with the long-term uptrend beginning to come under some pressure.

The 7751 level is the most notable area of support, which would have to break for the price to begin looking more bearish. Until then, watch for a potential bounce to continue the recent uptrend.

FTSE 100 chart

FTSE 100 chart

FTSE 100 chart

DAX consolidates around trendline support

The DAX has been respecting an ascending trendline support over recent trading days, with this morning’s bounce reaching (and rejecting) the 13,296 intraday swing high.

The break above 13,296 (bullish), or below 13,166 (bearish), would provide us with the signal of where this market is moving next. Ultimately, even if we do break lower, this current pullback is seen as a retracement of the wider rally from 12,742.

DAX chart

DAX chart

DAX chart

Dow continues to outperform

The Dow Jones remains a more attractive proposition over its European counterparts, with the tax reform and weaker dollar impact helping drive further upside.

As we continue to push to new highs, watch for the continued creation of higher highs and lows. As such, a bullish short-term view remains, as long as the price is above 25,896.

Dow Jones chart

Dow Jones chart

Dow Jones chart

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