Skip to content

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved.

Levels to watch: FTSE, DAX and Dow

European markets are recovering slightly today after heavy losses, but the bearish outlook seems to be intact.

German Stock Exchange
Source: Bloomberg

FTSE 100 eyes 100-day SMA

All eyes remain on the 7130 level, which was breached yesterday. The index is now attempting to recover the level and move above it, but with support now set as resistance it may prove difficult.

A further drop would head towards 7060 and then down to the 100-day simple moving average (SMA) at 6972. Any rally needs to clear 7170 to indicate that the buyers are firmly in charge.

DAX could test 11,200

Having fallen some 2% from its peak, the index may be poised for a small rebound, but it will need to post a daily close back above 11,800 to restore the uptrend.

A continuation of the downward move off the highs of last week would see 11,400 tested, and potentially as far as 11,200. 

Dow Jones could test 20,000

US markets were heavily oversold yesterday, so a bigger recovery could be in the offing for the index. Yesterday’s bounce took the price back to 19,972, so this is the first area to watch, with a move back above here leading to a test of previous resistance at 20,000.

A further drop will bring 19,578 and 19,423 into play. 

IGA, may distribute information/research produced by its respective foreign marketing partners 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.

This information/research prepared by IGA or IG Group is intended for general circulation. 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 or 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. 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. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

See important Research Disclaimer.

Find articles by writer