CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved.

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.

IG Analyst

Publication date : 2018-08-10T09:23:30+0100

Video poster image

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.

FTSE 100 chart

FTSE 100 chart

FTSE 100 chart

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.

DAX chart

DAX chart

DAX chart

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.

Dow Jones chart

Dow Jones chart

Dow Jones chart

The information 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 Bank S.A. 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 and as such is considered to be a marketing communication.

Find an article

Find articles by writer

CFDS are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved.

This website is owned and operated by IG Bank S.A. Registered address at 42 Rue du Rhone, 1204 Geneva, authorised and regulated by FINMA.

The information on this site is not directed at residents of the United States and Belgium, or any particular country outside Switzerland and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.