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 have been attempting to regain ground, yet with recent price action taking us back into Fibonacci support, we could start to see markets turn higher before long.

anonymous

Publication date : 2018-10-19T09:59:38+0100

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FTSE 100 rebounding after yesterday’s pullback

The FTSE 100 is trading back at trendline resistance this morning, following a rally off the back of a retracement into the 61.8% support level.

There is a strong chance that we will be looking at a potential bullish breakout for this index unless we see a move back below 6922. The key to gaining confidence that this market is set for a bullish surge would be a rally through the 7078 swing high.

FTSE 100 chart

FTSE 100

FTSE 100 chart

DAX turning higher after 76.4% retracement

The DAX has declined since the initial surge seen in the first half of the week, with the price falling into the 76.4% retracement.

The index is turning higher since hitting that Fibonacci support level, and this could provide us with a potential resurgence. The key is the ability to remain above the 11,397 level, with a move into the area between 11,505 and 11,397 providing a warning signal that such a break could come into play.

DAX chart

DAX chart

DAX chart

Dow drifts lower after recent resurgence

The Dow Jones has turned lower into the 61.8% retracement this week, following a break below trendline support.

The wider respect of an ascending trendline at the market low of 24,896 highlights the potential for a significant market bounce, with a break below that low signaling a possible substantial breakdown. Until then, there is a strong chance that we will see this market turn higher before long, with any short-term decline simply pointing towards a move into the 76.4% Fibonacci at 25,124. Thus unless we see a break below 24,896, a bullish resurgence looks likely before long.

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.

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