Skip to content

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% 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. 69% 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.

FTSE 100, DAX and Dow likely to weaken after overnight rebound

FTSE 100, DAX and Dow look likely to turn lower following a period of gains overnight.

Video poster image

FTSE 100 rallies into trendline and Fibonacci resistance

The FTSE 100 has been on the rise overnight, with the index moving into the confluence of trendline and 61.8% Fibonacci resistance. With the price showing signs of weakening within that deep retracement zone, there is a good chance we will start to weaken from here.

Whether we do see more short-term upside or not, a bearish outlook remains in play unless we see a break through 5428 resistance.

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

DAX breaks through key resistance

The DAX has managed to tentatively push through the 9197 resistance level this morning, raising the possibility of a continuation of this short-term rebound for the index. With the 61.8% Fibonacci retracement level also resting around this point of resistance, we would need to see a clear break higher to signal a likely move into the 76.4% retracement at 9524.

In either case, this is unlikely to be the end of the sell-off, with a bearish wider perspective remaining in place. With that in mind, watch for how we respond to this 9197 level as a gauge of whether this rally ends here or pushes into a more convincing higher high.

DAX chart Source: ProRealTime
DAX chart Source: ProRealTime

Dow Jones starts to turn lower after overnight gains

The Dow Jones is turning lower after an overnight period that has seen the index rise towards the top of a standard deviation channel.

This channel highlights the ongoing downtrend in play, with further weakness likely from here. A break through 21,023 would be required to negate this bearish outlook.

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

This information has been prepared by IG, a trading name of IG Markets Ltd 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. See full non-independent research disclaimer and quarterly summary.

Take a position on indices

Deal on the world’s major stock indices today.

  • Trade the lowest Wall Street spreads on the market
  • 1-point spread on the FTSE 100 and Germany 40
  • The only provider to offer 24-hour pricing

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Monday. 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.

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.