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 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. 70% 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

anonymous

Publication date : 2018-09-11T09:42:12+0100

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FTSE 100 consolidates amid recent downturn

The FTSE 100 has been in decline throughout the past two weeks, with the recovery in the pound denting confidence in UK-listed stocks.

We have been consolidating this week, with the index failing to break below Friday’s low thus far. A fall below the 7256 level would go some way to pointing towards further downside. Given that this consolidation comes around the wider 61.8% retracement (7247), a break lower from here would point towards a move into the 76.4% retracement level (7092).

FTSE 100 price chart

FTSE 100 price chart

FTSE 100 price chart

DAX turning lower after recent rebound

The DAX has been attempting to regain ground since Friday’s low, with the price heading lower from trendline resistance. We are now seeing a challenge of the ascending trendline, which caps the lower bounds of this recent symmetrical triangle formation.

A break below here would point towards another move lower, yet a break of the 11,929 level would take on even more bearish significance. Conversely, to the upside, we would need a break through 12,093 to bring about a more bullish picture.

DAX price chart

DAX price chart

DAX price chart

Dow turning towards Fibonacci support once more

The Dow Jones remains within consolidation mode, rotating between the 26,073 mark and the 25,820 Fibonacci support. With the index having regained some ground overnight, it seems as if we are likely heading back towards that 61.8% level (25,820). This wider pullback seen over the past two weeks is likely to continue.

However, it is worthwhile being aware of that wider outlook, with the 61.8% (25,820) and 76.4% (25,739) levels likely to represent the bottom line of this pullback. As such, while we could see further short-term downside, it looks likely that we are in a retracement, which will soon resolve to the upside.

Dow Jones price chart

Dow Jones price chart

Dow Jones price 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. 70% 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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