Levels to watch: FTSE 100, DAX and Dow

European indices are approaching a key breakdown level, below which we are likely to see substantial further downside.

FTSE 100 looks likely to break lower

The FTSE 100 is continuing its declines from the recent rally, with the price turning back towards key support this morning.

The wider trend over the past month has seen wide swings in each direction, and thus there is a strong likeliness we will sell off yet again to continue this wider consolidation pattern. Watch for an hourly close below 7706 to provide a bearish outlook for the coming trading days.

DAX breaking below trendline support

The DAX is also turning lower, with the price falling below trendline support.

This heightens the chances of a sharp deterioration in the near future, with a break below 12,535 and 12,493 crucial to sparking that next move lower.

Dow weakening in retracement mode

The Dow Jones is similarly weakening, yet with a clear uptrend remaining in play, there is still a question mark over whether this is simply a retracement of the rally from 25,114 or something bigger.

For this to turn into a wider bearish view, we would need to break below 25,114. Until then, this weakness looks likely to be short-term in nature. 

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 analysts

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. 79% 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.