CFDs are a leveraged product and can result in losses that exceed deposits. Trading CFDs may not be suitable for everyone, so please ensure you fully understand the risks and take care to manage your exposure.
Established in 1974
Over 185,000 clients worldwide
15,000 markets worldwide

Levels to watch: FTSE 100, DAX and Dow

Market downside has brought a number of bearish breaks across global indices. With the FTSE 100 breaking key support, will we see the DAX and Dow do the same?

CFDs are a leveraged product and can result in losses that exceed deposits. Trading CFDs may not be suitable for everyone, so please ensure you fully understand the risks and take care to manage your exposure.

FTSE 100 breaks key support following wedge

Following a move lower from the rising wedge in play throughout February, the FTSE 100 has managed to break below the key 7187 level.

While that break below 7187 points towards downside for the pair, the respect of the 50% retracement raises the chances that we will move higher from here. A break above 7293 would be required to negate the possibility of another leg lower, and until then there is a good chance that a short-term bounce would be greeted by another leg lower.

DAX heads towards crucial support level

The DAX has managed to tumble towards the crucial 12,281 support level overnight, with a break below that level pointing towards a more protracted move lower.

As long as the price remains above that level, there is a strong possibility it will turn higher. As such, watch for a break or rebound from 12,281 as a determinant of forthcoming price action.

Dow breakdown brings us into Fibonacci support zone

The Dow Jones has similarly broken down, with the price falling into a deep retracement.

The index needs to break below 24,592 in order to have wider bearish implications. Until then, there is a chance we could see a rebound from this 24,881-25,059 zone. 

This information has been prepared by IG, a trading name of IG 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. 

CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.