Levels to watch: FTSE, DAX and Dow

The indices turn higher, in an attempt to break out of this recent downtrend. However, we have seen no signs that this trend is over and as such, a bearish view remains in place across the board.

US trader in stock exchange
Source: Bloomberg

FTSE continues to trend lower

The FTSE is in the process of pushing higher this morning, with gains in the US feeding through to FTSE futures last night. However, this rally is likely to be brief, with the downtrend clearly intact. Certainly today’s Bank of England decision has the potential to derail it and as such, it could be worth taking off short-term positions around the event.

However, for now the downtrend is still in play and we would need to see an hourly close back above 6675 to negate this bearish view. The next key support level is at 6613.

DAX rallying into Fibonacci resistance

The DAX has been rallying heavily over the past 24 hours, with price pushing into the head and shoulders neckline resistance. With the 76.4% retracement also up ahead, it seems likely we will see the DAX turn lower once more in the coming hours. We would need to see a break through 10,344 to negate this recent downtrend. 

Dow expected to turn lower once more

The Dow Jones has rallied into the 76.4% retracement, within a clear downtrend. Given the trend in place, this seems like an interesting area to get short once more, with a break through 18,401 required to negate this downtrend.

A signal that we are set to move lower would come with an hourly close below 18,335, providing greater confidence of an impending sell-off.

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 full non-independent research disclaimer and quarterly summary.

CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen. 79% van de retailbeleggers lijdt verlies op de handel in CFD’s met deze aanbieder.
Het is belangrijk dat u goed begrijpt hoe CFD's werken en dat u nagaat of u zich het hoge risico op verlies kunt permitteren.
CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen.