CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure. CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure.

Levels to watch: FTSE 100, DAX and Dow

Indices stage a rebound after a bout of recent losses. However, the picture remains bearish and this looks like a potential selling opportunity.

FTSE 100 rebound looks like a temporary retracement

The FTSE 100 has managed to put together a rebound overnight, coming off the back of a notable breakdown and double top completion.

The recent rally has brought the index back into the 7268 neckline from that pattern. Whether we respect that level or not, this rebound is expected to provide us with a retracement of the decline from 7371. As such, short-term upside could occur, yet a bearish outlook remains unless we see a break through 7371.

DAX expected to continue declines of past week

The DAX has similarly seen significant downside over the course of the past week, with price creating lower highs and lows.

That points towards the current rise as being another retracement, with further downside looking likely before long. A break through 12,214 would negate that bearish outlook, while a fall below 11,824 would bring a bearish signal for the medium term rather than the short-term downtrend currently in play.

Dow rebound looks destined to falter once more

The Dow Jones is also moving higher off the back of recent declines.

Coming off the back of a breakdown below the double top neckline of 25,556, it looks like we are within a retracement period, where a break through 25,957 would be required to negate the current bearish pattern. However, it is notable that for the index to look truly bearish, we would need to see a drop below the 25,220 low from March and May.

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.