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

European markets are outperforming their US counterparts, with the FTSE 100 and DAX pushing upwards. However, there are signs that point towards a potential reversal of these fortunes.

IG Analyst

Publication date : 2018-11-15T09:31:27+0000

Trader

Source: Bloomberg

FTSE 100 retains bearish outlook despite rebound

The FTSE 100 is pushing upwards, with a weakening pound helping drive UK stocks higher.

Coming off the back of a rising wedge formation, there is a strong chance we will see the index falter once more rather than rally through the 7175 peak set on Monday.

FTSE 100 chart

FTSE 100 chart

FTSE 100 chart

DAX regains ground within recent downturn

The DAX is also regaining ground in the wake of recent declines.

We have seen significant volatility coming into play given everything that is happening in relation to Brexit, Italy and German growth. However, given the wider bearish trend, and lower highs set throughout early November, there is a strong chance that this rebound will fall short. As such, a bearish outlook remains in play unless we see a rally through 11,609 resistance.

DAX chart

DAX chart

DAX chart

Dow tumbles into Fibonacci support

The Dow Jones has been consistently selling off this week, with price falling into the 61.8% retracement overnight.

The wider context does show this pullback to be a likely retracement of the 24,120-26,277 rally, As such, there is a strong possibility that the bulls will come in again around the 24,944 or 24,629 levels. A break below 24,944 would be required to bring about a more bearish wider outlook for the index.

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.