CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Levels to watch: FTSE 100, DAX and Dow

Global indices have been breaking lower, with FTSE 100, DAX and Dow looking likely to see further downside.

anonymous

Publication date : 2018-06-26T09:39:51+0100

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FTSE 100 rally unlikely to last

The FTSE 100 has managed to break below the crucial 7553-7600 support zone, bringing a heightened bearish outlook for the index. Overnight gains have taken the index back into the 7543 swing low from last week, yet we are already seeing the sellers come back in once again.

With such a shallow rally, it makes sense to await an hourly close below 7489 to provide another bearish signal. Alternatively, a deeper retracement of yesterday’s sell-off would also look attractive for shorts. A break above 7696 would provide a more bullish outlook.

FTSE 100 price chart

FTSE 100 price chart

FTSE 100 price chart

DAX consolidates after recent losses

Yesterday saw the DAX fall drastically, as the trade war sell-off gathers pace.

This morning has seen a relatively low-key rebound, and with trendline resistance up ahead, there is a good chance we will turn lower yet again before long. As such, a bearish outlook remains in play unless we see a break through the 12,611 swing high.

DAX price chart

DAX price chart

DAX price chart

Dow breaks key support level

The Dow Jones managed to break below the 24,247 swing low yesterday, bringing about another bearish development. The trend over the past fortnight has clearly been a bearish one, and this short-term trend is likely to persist.

With that in mind, further downside is expected unless we see a break through the 24,664 high set on Friday. The middle Bollinger band has been a good indicator to predict when we will see the market turn lower, and with that line currently at 24,459 there is a good chance that short-term gains would be fleeting.

Dow Jones price chart

Dow Jones price chart

Dow Jones price chart

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This information has been prepared by IG, a trading name of IG Markets Limited and IG Markets South Africa 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. International accounts are offered by IG Markets Limited in the UK (FCA Number 195355), a juristic representative of IG Markets South Africa Limited (FSP No 41393). South African residents are required to obtain the necessary tax clearance certificates in line with their foreign investment allowance and may not use credit or debit cards to fund their international account.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. Clients can lose more than they deposit. All trading involves risk.

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