FTSE 100, DAX and Dow likely to turn lower once again

FTSE 100, DAX and Dow weakness looks likely to return despite overnight gains.

FTSE 100 breaks lower from rising wedge formation

The FTSE 100 slumped lower yesterday, with the index falling sharply from a rising wedge formation.

This is in line with the wider bearish trend in play since late July. We have seen the price attempt to regain ground overnight, yet that is likely to be a fleeting move. A failure to break through 7183 would be key to signaling further downside. As such, a bearish turn looks likely following this rally into Fibonacci resistance, with a break through 7183 required to start bringing a more bullish short-term picture to the fore.

DAX consolidates after yesterday’s sharp move lower

The DAX saw similar declines yesterday morning, with the price breaking below the 12,072 and 11,968 swing lows.

That points towards the possibility of further downside to come. With the price consolidating, watch for a break below 11,957 as a bearish sell signal from here. Conversely, a rise through 12,034 points towards further short-term gains.

Dow declines after head and shoulders completion

The Dow Jones completed a head and shoulders formation yesterday, with the break below 26,422 paving the way for further downside.

That bearish signal remains relevant, with overnight gains looking likely to be sold into. As such, further downside looks likely from here, with a break through 26,421 required to start bringing about a more bullish outlook for the pair.


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.