FTSE 100, DAX and Dow head lower once more
FTSE 100, DAX and Dow head lower, but key hurdles remain until we can say this sell-off will have legs.
FTSE 100 slumps as second wave fears finally take their toll
The FTSE 100 has been on the slide, with the breakdown below 6181 providing an end to the recent period of gains seen on the index.
Despite seeing some initial support around the 61.8%, the index is breaking lower once more this morning, with the price heading towards the confluence of trendline and 76.4% Fibonacci support level (6028). From a wider perspective, this selling pressure needs to break through the 5930 lows to bring about a wider bearish picture.
DAX drops into Fibonacci support
The DAX has also reversed lower, with the recent rally into 76.4% Fibonacci resistance (12,619) bringing about a bearish reversal for the index. We are currently seeing the index respect Fibonacci support (11,980), following an initial decline.
Down below, the next Fibonacci support level comes into play at 11,829 (76.4%). Again, while we are seeing sharp downside for now, a break below the 11,586 level is required to bring a wider bearish picture into play. Until then, the ability to break Fibonacci support is key here, with a more bullish picture only coming into play with a break through the overnight peak of 12,236.
Dow Jones breaks trendline support amid recent decline
The Dow Jones has managed to break below trendline support this morning, bringing the index back into the 76.4% Fibonacci region. Recent declines point towards a potential bearish reversal coming into play, yet a drop below the 24,564 level would be required to bring greater confidence that these losses are set to develop into something bigger.
For the short term, a decline below the 76.4% Fibonacci level at 25,091 would bring greater confidence of further short-term downside.
This information has been prepared by IG, a trading name of IG Australia Pty Ltd. 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.
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
