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.

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

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


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.