Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.

FTSE 100, DAX and Dow drop towards critical support levels

FTSE 100, DAX and Dow tumble on second wave fears, but will Fibonacci support help elevate prices?

FTSE 100 drops back towards channel support

The FTSE 100 has continued its multi-month downtrend, with yesterday’s slump sparking another drop following the recent upward retracement. The rebound seen in early September took us back into the 61.8-76.4% Fibonacci retracement zone, yet we have seen that rise capitulate in style. With price having dropped back towards the 5764 support level, there is a good chance the moderate gains seen since yesterday’s lows will be fleeting. As such, another leg lower looks likely from here, with price heading back towards the lower boundary of the descending standard deviation channel.

DAX slumps into 76.4% Fibonacci support level

The DAX has also seen sharp downside amid a rise in second-wave anxiety, with the drop below 12746 bringing about a wider retracement. That has taken us into the 76.4% Fibonacci retracement level at 12506. With price consolidating around that level, we will need to see a break through the 12702 level to start building a more bullish picture for the index. From this perspective, we would need to see a break below the 12211 level to bring about a fresh wider bearish picture. Until then, it is a case of watching to see if the index can continue the wider bullish trend to rebound from these levels.

Dow Jones drifting lower after Fibonacci rebound

The Dow has started to weaken following yesterday’s late rebound, with the sharp declines seen at the beginning of the week still very much in play. That being said, the wider uptrend seen over the course of recent months does still remain in place unless price breaks below the 25985 low seen in late-July. With price having found support at the 76.4% Fibonacci support level, we need to watch out for whether the index break below yesterday’s lows or starts to regain ground from here.

Seize your opportunity

Deal on the world’s stock indices today.

  • Trade on rising or falling markets
  • Get one-point spreads on the FTSE 100
  • Unrivalled 24-hour pricing

See opportunity on an index?

Try a risk-free trade in your demo account, and see whether you’re on to something.

  • Log in to your demo
  • Try a risk-free trade
  • See whether your hunch pays off

See opportunity on an index?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Get spreads from one point on the FTSE 100
  • Trade more 24-hour indices than any other provider
  • Analyse and deal seamlessly on smart, fast charts

See opportunity on an index?

Don’t miss your chance. Log in to take your position.

Related articles

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.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Monday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

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 spread betting and CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.

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.