FTSE 100, DAX and Dow at risk of another move lower

FTSE 100, DAX and Dow are at risk of further losses, as recoveries fail to gain enough traction.

FTSE 100 looks at risk of another move lower

The FTSE 100 has been gaining ground at the beginning of the week, with the index attempting to push out of an intraday downtrend that was in play the week prior.

That trend of lower highs and lower lows comes into question given the recent respect of the 76.4% support level at 7145. A break through 7198 would bring about a more bullish outlook, yet the fading momentum on this rally does raise the possibility of another leg lower to continue this bearish trend.

DAX rallies towards key bullish breakout level

The DAX has managed to rally away from the crucial 12,599 support level, where a break below that point would have provided us with a bearish head and shoulders formation.

With that now seemingly off the card, we have seen the price move into the 12,818 resistance level. A break above that level would bring about a bullish continuation signal. As such, watch out for whether we can see a break through 12,818 as sign that the recent uptrend is set to continue.

Dow at risk of another leg lower

The Dow Jones has been tentatively regaining ground following Friday’s declines, with the index rallying through the 26,875 level yesterday.

However, despite that break there is a strong chance that we are setting ourselves up for another bearish phase given the lack of conviction evident within this recovery. The shallow slant of this rally could signal that this is simply a pause before the bears come back into play once more. For confirmation of this, watch for a break below 26,742.


The information 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 Bank S.A. 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 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 full non-independent research disclaimer.

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, 1.2 on the Germany 30, and 0.4 on the US 500
  • 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, 1.2 on the Germany 30, and 0.4 on the US 500
  • 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
liveprices.javascriptrequired
liveprices.javascriptrequired
liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

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.