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

Indices are gaining ground from recent downside and consolidation, as markets begin to look towards a resurgence phase.

anonymous

Publication date : 2017-09-27T12:26:24+0100

Stock exchange

Source: Bloomberg

FTSE 100 pushing higher from consolidation

The FTSE 100 is breaking higher from its recent consolidation, in what looks like the beginning of another leg higher. A break and an hourly close above 7323 would point towards further upside to come, before we move into another consolidation phase.

There is still scope for this to be a multi-legged retracement of the 7435-7195 sell-off, which would point towards a move into Fibonacci resistance before moving lower once more. With that in mind, look out for potential weakness either at the 61.8% (7343) or 76.4% (7379) retracements. However, for now the trend is clearly pointing towards further upside from here.

FTSE 100 price chart

FTSE 100 price chart

FTSE 100 price chart

DAX breaking higher from recent range

The DAX is pushing out of its recent range, in what looks like another continuation of the strength seen in recent weeks. The deep retracements we have seen without creating a new lower low means there have been many entry opportunities to get long for a beneficial risk-to-reward trade.

However, for now we are watching for an hourly close above 12,648 to provide confirmation signal on this recent bullish breakout. We would need to see the price break below 12,551 to negate this bullish outlook.

DAX price chart

DAX price chart

DAX price chart

Dow showing initial signs of resurgent strength

The Dow Jones is regaining ground after respecting a previous low of 22,281, with the index showing signs of a resurgence. The key thing to watch out for here is whether the index breaks above the 22,366 mark. Should that occur, we would be looking back towards the 22,429 highs.

Conversely, a break back below 22,281 would point towards a more bearish view. As such, the move out of the 22,281-22,365 zone will dictate how things look from here on in.

Dow price chart

Dow price chart

Dow 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.