Important Notice: IG Markets South Africa will no longer provide Trading Accounts. This change does not affect existing International/offshore accounts. New applications will be supported by IG International, part of IG Group, via https://www.ig.com/en. Important Notice: IG Markets South Africa will no longer provide Trading Accounts. This change does not affect existing International/offshore accounts. New applications will be supported by IG International, part of IG Group, via https://www.ig.com/en.

Levels to watch: FTSE 100, DAX and Dow

Recent gains have been tempered somewhat overnight, yet with European indices near upside breakout levels, we could see a further outperformance in the FTSE 100 and DAX.

anonymous

Publication date : 2018-04-12T09:22:16+0100

Video poster image

FTSE 100 consolidating around key resistance

The FTSE 100 managed to break above the 7256 mark earlier in the week, hitting the highest level in over a month. This threshold is important for the index and the consolidation we are currently seeing is a reflection of that.

With the price breaking below the ascending trendline at the bottom of a rising wedge, there is a possibility of a retracement from here. As such, watch for an hourly close above 7272 to signal a continuation of the recent uptrend, where 7340 represents the next big hurdle to the upside.

FTSE 100 price chart

FTSE 100 price chart

FTSE 100 price chart

DAX pulls back from breakout level

The DAX moved within touching distance of the crucial 12,477 resistance level on Tuesday, with the price subsequently pulling back to below the lower threshold of a rising wedge. This points towards the potential of further downside, given the wider creation of lower highs.

However, for us to start looking at this index in a more bearish manner, the 12,201 level needs to be broken. Until then, there remains a good chance we will head back towards 12,477, which, if broken, would signal a more bullish shift for the index.

DAX price chart

DAX price chart

DAX price chart

See all indices live prices

Learn more about trading indices with IG

Dow back into trendline support

The Dow Jones has dropped back into trendline support once more this morning, with near-term price action taking on a symmetrical triangle shape consisting of lower highs and higher lows.

The wider downtrend points towards a likely break lower, with any rally coming into trendline and horizontal resistance (24,637) pretty quickly. A break below trendline support would provide a near-term sell signal, yet a move below 23,738 would provide greater confidence of a protracted bearish move for the pair.

Dow Jones price chart

Dow Jones price chart

Dow Jones price 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

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.

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. Clients can lose more than they deposit. All trading involves risk.

IG is a trading name of IG Markets Ltd and IG Markets South Africa Limited. 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 order to utilise their foreign investment allowance should the South African resident wish to open an offshore account with IG Markets Limited.

IG provides execution only services and enters into principal to principal transactions with its clients on IG’s prices. Such trades are not on exchange. IG Markets South Africa Limited is an authorised financial services provider (FSP No 41393). Whilst IG Markets South Africa Limited is a regulated FSP, CFDs issued by IG are not regulated by the FAIS Act as they are undertaken on a principal-to-principal basis.

IG Markets South Africa Limited is an authorised over-the-counter derivative provider and is regulated by the Financial Sector Conduct Authority.

The information on this site is not directed at residents of the United States or Belgium or any particular country outside South Africa 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.

Voted SA’s top CFD provider in Business Day Investors Monthly Annual Stockbroker Awards in 2012, best platform for Active Day Traders in 2013 and 2014, SA's best Online Broker in 2015 and 2017 and SA's best CFD provider in 2020 as well as SA's Top CFD Broker in 2021.