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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70% 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. 70% 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

Small gains in early trading have been swiftly reversed, as the bearish moves of the past few days gather strength.

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FTSE 100 still under pressure

The FTSE 100 continues to fall back from trendline resistance from the May highs.

A possible bullish wedge is in play on the hourly chart, but a break higher requires a close above 7420 to target 7480. Near-term targets to the downside are 7365 and then 7260.

FTSE 100 chart
FTSE 100 chart

DAX reverses Wednesday’s gains

A slight rebound yesterday for the DAX has been rapidly reversed in early trading this morning as the bears regain the initiative.

A push above 11,930 is needed to reverse the current bearish view, which suggests a deeper retracement towards 11,704.

DAX chart
DAX chart

Dow falters

While other US indices have held up relatively well, the Dow Jones has faltered, partly thanks to Boeing.

The index is now back to the 26,100 area of support, and a move below this opens the way to more downside. A rebound above 26,200 is needed to secure a more bullish view.

Dow Jones chart
Dow Jones chart

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.

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