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.

Levels to watch: FTSE 100, DAX and Dow

Recent upside for European and US indices have brought about some respite. However, with the recent downtrends remaining intact, there is still a chance of further selling.

FTSE 100 turning lower after recent rebound

The FTSE 100 is showing signs of a potential bearish shift, with a break below Friday’s low of 7072 providing a strong possibility of a pullback from here.

Given the fact that the rebound from late October came from the crucial historical level of 6841, there is a good chance we are seeing the beginning of a wider bullish move come into play. With that in mind, watch for any such near-term weakness to be a potential pullback rather than reversal. A break below 6841 would bring a medium-term bearish view into play.

DAX turning lower from Fibonacci resistance

The DAX is starting to weaken once more, coming off the back of the rejection at the 76.4% retracement level of 11,662.

This points towards another potential sell-off, with a bearish view in play until we break to a new higher high. For now, that means we look for another leg lower unless the price breaks above 11,852.

Dow rally could come under pressure

The Dow Jones is starting to show signs of weakness, with the market still remaining within the downtrend that has been in play throughout October. The ability to break through 25,862 will be key to signaling a bullish break for the index.

However, until that happens, there is still a good chance of further downside, with a break below 25,076 providing greater confidence of such a move.

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.

Find articles by writer