Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70% 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.

Levels to watch: FTSE 100, DAX and Dow

Sterling strength is keeping the FTSE 100 subdued, while the DAX and Dow are in a much more optimistic mood thus far.

Source: Bloomberg

FTSE 100 breaks below key support level

The FTSE 100 broke below the notable 7380 support level yesterday, bringing the price back towards the 7349 low.

This brings to mind the possibility of a wider retracement into 7288, should we break below 7349. As such, watch out for that level as a key determinant of where we will go in the short term.

DAX sell-off brings new retracement to buy into

The DAX is punching higher following a retracement overnight. This retracement came close to the 76.4% level, passing the 61.8%.

Given yesterday’s bullish triangle breakout, this provides us with a strong conviction that the index will push higher from here, as is playing out so far. A bullish outlook remains in play, unless the price breaks below the 12,964 swing low.  

Dow pushes onwards within consistent rally

The Dow Jones has provided daily record highs, with yesterday’s triangle consolidation leading the way to yet another push into fresh territory.

This trend is expected to persist, with a break back below 23,890 required to negate this bullish short-term view. With that in mind, consolidation and retracements are viewed as buying opportunities, rather than reversal signals.  

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