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.

FTSE 100, Dax, Dow rebound, yet trends point to further downside

Stocks have been regaining ground after recent declines. However, with bearish trends in play, further downside looks likely before long.

FTSE 100 rebound looking like a short-term retracement

The FTSE 100 has started to turn lower following a period of upside that took the price into a zone between the 61.8% and 76.4% retracements of the 7237-7078 sell-off.

Unless we see that 7237 peak overcome, it is likely that we will see another move lower from here, with a break below 7141 key to providing a more bearish outlook for the day.

DAX turning lower after retracement phase

The DAX is similarly showing signs of weakness, following on from yesterday’s rebound. However, this recent rally into the 61.8% Fibonacci level looks like it could be the end of this recovery.

The key here is whether we can see an hourly close below 11,710 or not. Should that occur, we would be looking at a bearish picture for the index for the day ahead.

Dow rebounds into key resistance level

The Dow Jones has managed to regain ground after recent declines, with the price reaching and respecting the late-May low of 24,934 as new resistance.

This looks like a retracement of the sell-off from 25,220, and thus it makes sense to look at this as a selling opportunity unless we break through that 25,220 swing high. As such, the 24,983-25,073 zone looks set to provide us with an interesting round for shorts.

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.