Skip to content

CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. 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 financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

FTSE 100, DAX and Dow at risk of another move lower

FTSE 100, DAX and Dow are at risk of further losses, as recoveries fail to gain enough traction.

Indices Source: Bloomberg

FTSE 100 looks at risk of another move lower

The FTSE 100 has been gaining ground at the beginning of the week, with the index attempting to push out of an intraday downtrend that was in play the week prior.

That trend of lower highs and lower lows comes into question given the recent respect of the 76.4% support level at 7145. A break through 7198 would bring about a more bullish outlook, yet the fading momentum on this rally does raise the possibility of another leg lower to continue this bearish trend.

FTSE 100 chart Source: ProRealTime
FTSE 100 chart Source: ProRealTime

DAX rallies towards key bullish breakout level

The DAX has managed to rally away from the crucial 12,599 support level, where a break below that point would have provided us with a bearish head and shoulders formation.

With that now seemingly off the card, we have seen the price move into the 12,818 resistance level. A break above that level would bring about a bullish continuation signal. As such, watch out for whether we can see a break through 12,818 as sign that the recent uptrend is set to continue.

DAX chart Source: ProRealTime
DAX chart Source: ProRealTime

Dow at risk of another leg lower

The Dow Jones has been tentatively regaining ground following Friday’s declines, with the index rallying through the 26,875 level yesterday.

However, despite that break there is a strong chance that we are setting ourselves up for another bearish phase given the lack of conviction evident within this recovery. The shallow slant of this rally could signal that this is simply a pause before the bears come back into play once more. For confirmation of this, watch for a break below 26,742.

Dow Jones chart Source: ProRealTime
Dow Jones chart Source: ProRealTime

This information has been prepared by IG, a trading name of IG 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.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

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.

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 Friday. 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.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

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 CFDs.

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