Skip to content

CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. 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 financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

FTSE 100, DAX and Dow at risk of short-term declines

FTSE 100, DAX, and Dow are all showing signs of potential weakness after recent gains.

Video poster image

FTSE 100 reversing lower

The FTSE 100 completed a head and shoulders formation yesterday, bringing a more bearish outlook for the index. The wider picture points towards a possible bullish reversal coming into play before long.

However, it looks like we could see further downside over the short term, with the decline below 7205 adding to that bearish theme. As such, further downside looks likely today, with a break through 7245 required to bring about a more positive outlook.

FTSE 100 price chart Source: ProRealTime
FTSE 100 price chart Source: ProRealTime

DAX starts to roll over after recent rally

The DAX has been on a consistent rally throughout the past two weeks, bringing the index back into a five-week high yesterday. Nonetheless, the price is now starting to turn lower from a rising wedge formation, pointing towards a possible bearish phase coming into play. It looks as if 12,186 represents the short-term intraday hurdle to overcome in a bid to reverse some of the recent gains.

Alternatively, we would need to see a break up through yesterday's high of 12,244 to bring about a bullish continuation signal. Until then, this index looks at risk of a sharp decline if 12,186 is broken.

DAX price chart Source: ProRealTime
DAX price chart Source: ProRealTime

Dow falls into trendline support

The Dow Jones has been weakening overnight, bringing its price back into an inside trendline. That support line should be important as a determinant of how things play out today, with a break lower from here pointing towards a day of downside ahead.

Ultimately, such weakness would be seen as a retracement of the rally from 25,973 though, highlighting the short-term nature of such potential declines.

Dow Jones price chart Source: ProRealTime
Dow Jones price chart Source: ProRealTime

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.

Seize your opportunity

Deal on the world’s stock indices today.

  • Trade on rising or falling markets
  • Get one-point spreads on the FTSE 100
  • Unrivalled 24-hour pricing

See opportunity on an index?

Try a risk-free trade in your demo account, and see whether you’re on to something.

  • Log in to your demo
  • Try a risk-free trade
  • See whether your hunch pays off

See opportunity on an index?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Get spreads from one point on the FTSE 100
  • Trade more 24-hour indices than any other provider
  • Analyse and deal seamlessly on smart, fast charts

See opportunity on an index?

Don’t miss your chance. Log in to take your position.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Friday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.