Levels to watch: FTSE, DAX and Dow

European markets show signs of potential impending losses, while US losses provide mixed messages for the resilient Dow.

Data screens reflected in a trader's glasses
Source: Bloomberg

FTSE looks bearish following breakdown

The FTSE 100 sold-off sharply at the open this morning, following on from a triangle formation over the past 24 hours. The break through trendline support alongside the 6778 swing low was a bearish signal that could spell trouble for the index.

This week’s OPEC meeting will likely provide the key catalyst for whether these losses remain, yet from a technical perspective, things look primed for further losses. Price is regaining ground following initial weakness, yet we are likely to see the index move lower before long, with an hourly close below yesterday’s low of 6768 key to further downside.

DAX tumbles below key support level

The DAX has dropped below the key 10,588 level, following on from a period of consolidation below the crucial 10,807 resistance level.

Should we see price maintain below the 10,588 level, then this could be a good area for the sellers to come in again.

As such, a bearish outlook is in play, with the 10,588 level crucial to the day’s fortunes. 

Dow weakens amid wider bull market

The Dow Jones has weakened somewhat over the past 24 hours, with price tumbling below the 19,120 mark yesterday. This could spell the beginning of a period of weakness, yet a break back above 19,141 would largely put that idea to bed.

As such, there is the potential for further weakness, yet given the resilience of the US markets, the chance of further downside is lessened. 

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.