FTSE 100, DAX and Dow head lower once again

FTSE 100, DAX and Dow back into bearish territory, following breaks below key support levels.

FTSE 100 consolidates after yesterdays decline

The FTSE 100 has started to show signs of a potential bearish reversal, following on from a period of gains throughout much of last week. The wider picture is increasingly bearish, following on from the drop into 7078 support last Monday.

With the price having dropped below the 7236 support level yesterday, it looks like the recovery could be over already. With the price consolidating, we are looking for a break below the 7206 support level to bring further declines into play here.

DAX sell-off expected to gather pace

The DAX has similarly turned lower, with the break below 11,748 paving the way for a bearish decline.

We have seen that bearish picture develop since then, and with prices forming continued lower highs and lower lows, it looks like we could see further selling come into play. A break below 11,616 would bring a continuation of this bearish trend, while a rise through the 11,728 swing high would be required to bring about a more bullish picture.

Dow declines as it unravels recent rebound

The Dow Jones has also turned lower this week, with the decline below 26,097 bringing about a more bearish picture for the index.

We have seen a moderate rebound overnight, yet that looks like a short-term phenomenon given the subsequent decline back into the 25,820 level. That shallow retracement seen overnight points towards a lack of bullish sentiment. Thus, further losses look likely in the event that we break below 25,820, while a rise through 26,417 would be required to negate this bearish picture.

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

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
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.

liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

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.