Skip to content

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 CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. 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 CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Levels to watch: FTSE 100, DAX and Dow

FTSE 100 continues to underperform, while DAX and Dow are in the driving seat. However, with the 76.4% support in play, could we see FTSE 100 rebound?

Wall street
Source: Bloomberg

FTSE 100 rallying from 76.4% retracement

FTSE 100 is regaining some composure following a sharp drop at the tail end of last week. The drop below 7300 paved the way for a strong move to the downside. However, with the 76.4% level having clearly provided support around 7200, there is a good chance we could see further upside to come from here.

A break back below 7195 would bring a worrying outlook, with the potential for a move below the key 7088 level. Until then, it looks likely that we could see a rebound into the 7300 resistance level, at which point questions would be asked. 

DAX breaks higher from range

The DAX has managed to push higher once more, following a period of consolidation throughout last week. This recent push and break above 12,563 looks to pave the way for a bullish week, with a move back below 12,490 required to negate the bullish outlook.

Until then, further upside looks likely, with 12,678 and 12,735 representing the next major resistance levels. 

Dow punches higher after trio of Fibonacci rallies

The Dow Jones has been trading at a new high this morning, and closed out last week in style. This completed three consecutive 76.4% retracements, with each resolving to the upside.

Further upside seems likely, yet with such an extended move higher, it looks like we could see a pullback soon enough. The nearest swing low comes with the minimal point of hesitancy, at 22,092. As long as we do not break below that level, it looks like any downside would provide a buying opportunity.

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

This information has been prepared by IG, a trading name of IG Markets Limited and IG Markets South Africa 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. International accounts are offered by IG Markets Limited in the UK (FCA Number 195355), a juristic representative of IG Markets South Africa Limited (FSP No 41393). South African residents are required to obtain the necessary tax clearance certificates in line with their foreign investment allowance and may not use credit or debit cards to fund their international account.