CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Please ensure you fully understand the risks involved. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Please ensure you fully understand the risks involved.

Levels to watch: FTSE 100, DAX and Dow

European and US markets have been on the rise, yet with the uptrend slowing, there is a strong chance we will soon see a strong decline for the likes of the FTSE 100, DAX and Dow.

FTSE 100 rally unlikely to last

The FTSE 100 has been on the rise overnight, following on from a bearish break from the 76.4% retracement.

The subsequent drop below 6861 provided us with a bearish outlook, which is expected to come back into play today. With that in mind, a bearish outlook is in play unless we break through the 7000 peak. However, with the Brexit vote taking place this evening, be aware of likely volatility to come.

DAX turning lower from notable resistance level

The DAX has managed to rebound back into the 10,987 resistance level, with the price now respecting that level to start declining once more.

The fact that we are continuing to create such marginal new highs highlights the possibility that this market is set to decline, with the inability to create a higher low on Monday highlighting that same sentiment. With that in mind, it looks highly likely that we will see the index break lower before long. Confirmation of that bearish sentiment comes with a break and close below 10,786.

Dow rallies into trendline resistance

The Dow Jones has managed to break through the 200-day simple moving average (SMA) on the four-hour chart, with the price completing a trendline by providing a third touch.

We are seeing the index turn lower in response, with another trendline worth watching to the downside as support. With that in mind, it is worthwhile watching out for a break below 23,726 as a signal of impending breakdown for the index.

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

See an opportunity to trade?

Go long or short on more than 17,000 markets with IG.

Trade CFDs on our award-winning platform, with low spreads on indices, shares, commodities and more.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. All share prices are delayed by at least 20 minutes. Prices are indicative only.

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.