FTSE 100, DAX and Dow losses continue amid risk-off move
FTSE 100, DAX and Dow continue to decline, with European losses leading the way.
FTSE 100 declines into wider retracement
The FTSE 100 has been on the slide amid a ramp-up in trade war fears last week. Following on from Asian losses overnight, we are seeing a similarly bearish start to the week for UK stocks.
However, the daily chart below highlights the respect of trendline support following a drop into the wider 7078-7730 retracement. The view that this is a retracement means that we should be looking for an upward turn between the 61.8% and 76.4% Fibonacci levels. With trendline support being respected below the 61.8% level, there is a chance we could start rising before long. Given the clear bearish trend over recent days, watch for bullish intraday signals to bring about greater confidence of such a resurgence.
DAX falls towards critical support level
The DAX has similarly declined heavily throughout the past week, with the index falling towards a crucial area of support.
The wider creation of higher lows could be negated soon, with a break below 11,598 bringing about a picture of further weakness. That is accompanied by the 220-day simple moving average (SMA) which is currently 11,643, with the ability or inability to break through that zone of support proving key to the direction of trade for the week ahead.
Dow continues to decline as trade war drives risk-off sentiment
The Dow Jones has seen selling ramped up over the start of the month, with a break below 26,657 bringing about another bout of downside for the index.
Further downside looks likely with the index now retracing the wider 24,603-17,402 rally. As such, a bearish picture remains unless we see a rise through the 26,576 level.
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.
