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

FX considerations continue to play a key part for indices, with FTSE 100 outperformance and Dow underperformance coming amid a weak pound and strong dollar.

anonymous

Publication date : 2018-05-01T09:12:06+0100

Video poster image

FTSE 100 continues to grind higher

The FTSE 100 remains in a bullish phase, with the index enjoying a significant boost from a weak pound of late.

The Bollinger band appears to encompass much of the price action, with the majority being confined to the upper zone of the band. With that in mind, there is a strong likeliness we will continue to see the price shift higher, where a break below the middle Bollinger band would point towards a potential move into the lower boundary of the Bollinger. However, such a move could actually represent a buying opportunity, and a bearish outlook would only come with a break below the 7334 swing low.

FTSE 100 chart

FTSE 100 chart

FTSE 100 chart

DAX continues to consolidate below key support

The DAX remains below the crucial 12,611-12,649 resistance zone, with the reaction to this area crucial to determining where we go from here.

With the previous drop below the 12,376 swing low, there is a chance of another move lower from here. However, we would need to see a break below 12,517 to provide a bearish view. To the upside, look for an hourly or four-hourly close above 12,649 to provide a bullish outlook.

DAX chart

DAX chart

DAX chart

Dow looks set for further downside

The Dow Jones sold off sharply from the 76.4% retracement yesterday, bringing about a heightened chance of further downside from here.

The important bearish signal came with the drop below 24,190, thus negating the recent creation of higher lows. As such, while we could see short-term gains, it is likely that such a move would be a retracement of the 24,501-24,122 sell-off. As such, look out for potential shorting opportunities around the 61.8-76.4% Fibonacci resistance zone of 24,356-24,411. A break above 24,501 would negate this bearish short-term outlook.

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

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.