Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

Levels to watch: FTSE, DAX and Dow

A very mixed bag for European and US equity markets sees strength in the UK counteract weakness in the DAX and Dow.

IG Analyst

Publication date : 2017-03-14T09:18:21+0000

Trader

Source: Bloomberg

FTSE continues to trend higher

The FTSE is continuing its ascent this morning, with the index pushing back towards the crucial 7397 resistance level. The ability to break through that level will say a lot about whether we will see this rally continue apace.

However, with the price forming a bearish rising wedge, there is a good chance we could be heading towards a potential pullback, should the price fall below the latest swing low (currently 7359). Until then, the uptrend continues to dominate.

FTSE chart

FTSE chart

FTSE chart

DAX fails to push on through Friday’s highs

The DAX is pulling back following a rally into 12.020 (Wednesday’s peak), with the failure to retake 12,068 certainly a worry. The key to whether this current move lower constitutes something bearish is an hourly close below the 11,919 support level.

Until then, we remain within a range that has been respected most of the time in the past 10 days. As such, any move into that 11,919 level would likely spark a bounce. A break below here would look bearish, while a jump back above 12,020 would provide a more bullish outlook.

DAX chart

DAX chart

DAX chart

Dow grinding lower, yet remains above key level

The Dow Jones has been drifting lower following the rally through 20,951 resistance on Friday. With the price moving gradually lower this morning, there is a good chance we could see another move lower in the short term. However, there is still a chance that what we are seeing is a retracement of the rally from 20,775, and as such the possibility of a bounce remains relevant.

A break below 20,775 would certainly be a big blow to Dow bulls, providing a more bearish outlook for the medium term. Until then, this downside could be fleeting.

Dow Jones chart

Dow Jones chart

Dow Jones chart

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, 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. 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. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Find articles by writer

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Professional clients can lose more than they deposit. All trading involves risk.

The value of shares, ETFs and ETCs bought through a share dealing account, a stocks and shares ISA or a SIPP can fall as well as rise, which could mean getting back less than you originally put in. Past performance is no guarantee of future results.

CFD accounts provided by IG Markets Ltd, spread betting provided by IG Index Ltd and share dealing and stocks and shares ISA accounts provided by IG Trading and Investments Ltd. IG is a trading name of IG Markets Ltd (a company registered in England and Wales under number 04008957), IG Index Ltd (a company registered in England and Wales under number 01190902) and IG Trading and Investments Ltd (a company registered in England and Wales under number 11628764). Registered address at Cannon Bridge House, 25 Dowgate Hill, London EC4R 2YA. IG Markets Ltd (Register number 195355), IG Index Ltd (Register number 114059) and IG Trading and Investments Ltd (Register number 944492) are authorised and regulated by the Financial Conduct Authority.

The information on this site is not directed at residents of the United States, Belgium or any particular country outside the UK 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.