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

Questions are being asked in Europe after the FTSE and DAX weakened in early trading. However, with the Dow approaching a triangle apex, will we see the US lead the way once more?

IG Analyst

Publication date : 2017-02-28T09:16:16+0000

Wall Street

Source: Bloomberg

FTSE turning lower again

The FTSE has followed up a higher low with a lower high, thus providing a somewhat mixed picture for where to go next.

With this in mind, it makes sense to wait for an hourly close above 7260 (bullish) or below 7238 (bearish) for our next signal.

FTSE chart

FTSE chart

FTSE chart

DAX weakening from key resistance cluster

The DAX is starting to weaken from the crucial 11,861 level, which encompasses last Monday’s high and the 50-period simple moving average.

A break back below 11,792 would be a bearish indicator for the short term, while an hourly close below that level would point towards a move back into trendline support around 11,750. Otherwise, a break back above 11,861 would point towards a continued resurgence for the index.

DAX chart

DAX chart

DAX chart

Dow likely to push through triangle resistance

The Dow Jones continues to move gradually higher, with the index knocking on the door of 20,835-20,845 a number of times this week. With that in mind, an hourly close above the 20,845 level would provide us with a bullish breakout signal.

Conversely, while we could see a push back below the current trendline support, we would need to see an hourly close below 20,769 to provide us with a less bullish outlook.

Dow Jones chart

Dow Jones chart

Dow 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.