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 markets are showing signs of a potential pullback, with support levels worth watching for bearish signals.

FTSE 100 rally starting to lose traction

The FTSE 100 has started to ease back somewhat, following on from a period of substantial gains over the past three weeks. The rally through 7196 points towards a bullish picture from here on in.

However, with the price breaking below trendline support, there is a question over whether we will begin to see a retracement come into play from here. As such, watch for an hourly close below 7179 as a bearish signal for the short term. Until then, the intraday uptrend still remains intact, with the bullish wider view remaining unless we break below 7064.

DAX weakening from trendline resistance

The DAX has started to turn lower this morning, following on from a rally into trendline resistance.

The ability or inability to break through 11,389 is going to be key in determining where we go from here. As long as we remain below that level, there is a chance we could see this index turn lower, with a break below the 11,254 level providing a short-term bearish view.

Dow consolidates ahead of US return

The Dow Jones was closed yesterday, as the US enjoyed the Presidents Day national holiday. While the market was tradeable with IG, we saw little by way of price action, with the index trading largely flat over the period. Given the sharp rally coming into this sideways consolidation, there is a chance we could see the index retrace some of the rally from 25,276.

However, we would need to see a break below that level to negate this recent uptrend. To the upside, a break through 26,071 would provide us with a bullish continuation signal given it’s existence as a significant historical resistance level.

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.

Take a position on indices

Deal on the world’s major stock indices today.

  • Trade the lowest Wall Street spreads on the market
  • 1-point spread on the FTSE 100 and Germany 40
  • The only provider to offer 24-hour pricing

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.