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 100, DAX and Dow

Global stocks are on the rise, yet with key hurdles to overcome, further selling still remains a possibility.

IG Analyst

Publication date : 2018-11-16T09:21:13+0000

Video poster image

FTSE 100 pushing higher amid GBP weakness

The FTSE 100 has been turning higher towards the end of the week, with a weakening pound sending it up.

This is expected to persist for the time being, yet until we break through the 7175 mark, it looks likely that we could be looking at a retracement here. As such, a bearish turn remains a distinct possibility until we break through the 7175 level.

FTSE 100 chart

FTSE 100 chart

FTSE 100 chart

DAX likely to turn lower once again

The DAX is consolidating in the wake of a rebound yesterday. The creation of lower highs and lower lows following a 76.4% retracement points towards a possible turn lower before long.

As such, a bearish outlook is in play unless we see a break above 11,609. This means that we could see short-term gains, yet unless we break at the 11,568 level, another downward turn looks likely.

DAX chart

DAX chart

DAX chart

Dow rebounds from deep retracement

The Dow Jones is showing signs of a recovery following a deep retracement that saw the price fall between the 61.8% and 76.4% Fibonacci levels.

The ability to break through the first major swing high of 25,498 is key in determining whether this is the beginning of a bullish phase. Given that we are currently trading around the short-term 76.4% resistance at 25,330, it makes sense to watch out for a break of that resistance, or a possible turn lower from here.

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.