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 provides the potential for short-term weakness. However, with the Dow in particular heading towards a crucial support zone, the bulls could come back into play.

anonymous

Publication date : 2017-11-09T09:53:00+0000

Wall Street

Source: Bloomberg

FTSE 100 rebounding after wedge breakdown

The FTSE 100 sold off sharply following a double top formation completed on Tuesday. That has taken us into the 76.4% retracement at 7481. The subsequent rally has provided a bearish wedge, which has now been broken.

The 7481 low is going to be crucial from here, with a move back below that level greatly increasing the chance that we will see the price move back down through 7448. As such, the outlook is somewhat mixed for now, where the respect of the Fibonacci level points towards a possible resurgence. However, the near-term wedge signals that we could see some near-term weakness.

FTSE 100 price chart

FTSE 100 price chart

FTSE 100 price chart

DAX breaking lower after ascending triangle

The DAX is breaking lower from an ascending triangle this morning, with the price breaking below the key 13,344 swing low.

A close below that level would provide greater confidence of a bearish follow through. Watch out for a break and hourly close below 13,344, or else above 13,420 to provide the basis for ongoing trade.

DAX price chart

DAX price chart

DAX price chart

Dow heading back into key support zone

The Dow Jones is heading lower in early trade, with a crucial region of support likely to come into play. Should the price break below 23,470 then it would complete a head and shoulders formation, while breaking trendline and simple moving average (SMA) support. This doesn’t seem likely given the wider uptrend.

The closer we get to that 23,470 mark, the better the buying opportunity. Therefore, a bullish view is in play, unless we break and close below that 23,470 level.

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. 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.

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