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

European and US indices are pushing higher once again, with the Dow leading the way amid weakness in the FTSE 100 and DAX.

anonymous

Publication date : 2018-07-17T09:10:38+0100

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FTSE 100 downturn likely to be short-lived

The FTSE 100 sold off sharply on Monday, with the price turning lower from the top end of a month-long range. This range remains in play, with the 7543 level marking the region of support which typically holds.

While we did not quite hit that region on Monday, there is still a chance we have already seen the sum total of the selling. With this range expected to persist, we either look for longs on another move back towards the 7543 mark, or on a break above the 7624 swing high.

FTSE 100 chart

FTSE 100 chart

FTSE 100 chart

Can the DAX continue to push higher?

The DAX has been gaining ground throughout July thus far, yet we are starting to see potential signs of weakness in this story.

The gains we have seen over recent days has failed to see a push through the 12,642 level, which is necessary for the market to continue pushing onwards from here. Should we see a push above 12,642 then the uptrend is likely to continue from here. However, a break below 12,504 would signal a bearish shift for the near term.

DAX chart

DAX chart

DAX chart

Dow pushes onwards amid recent recovery

The Dow Jones has been consistently pushing higher over recent weeks, and this looks likely to continue despite recent consolidation.

To the upside, we need to see a break through 25,106 to confirm a continuation of this trend. Watch for such a move to confirm further upside. A bullish outlook remains in place unless it breaks below 24,884, with a fall below 24,980 providing an initial warning sign that this trend could be coming to an end.

Dow Jones chart

Dow Jones chart

Dow Jones chart

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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.

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