FTSE 100, DAX and Dow sell-off begins to ease
FTSE 100, DAX and Dow has started to regain ground, following a week of incredible losses
FTSE 100 rebounds from historical low
The FTSE 100 has managed to bounce from the crucial 7078 support level this morning, following on from an incredible week of downside which culminated in a huge move lower after the close yesterday.
However, with price respecting the June low of 7079, it looks like we could be set for a bullish rebound if only to retrace some of the recent losses. That low also comes in at the 200-week simple moving average (SMA), which has been a reliable support level throughout recent years. With that in mind, further upside looks likely for the short term. However, there is obvious risk with such a play due to the heightened volatility and the distance from a reasonable stop-loss.
DAX rebounds after recent decline
The DAX has finally managed to find some buyers following a sharp decline throughout the past two-weeks.
That took the index below the crucial 11,598 support level, pointing towards further downside to come. However, for the time being, we are in retracement mode, which could be substantial given the recent declines. As such, further upside looks likely for the short-term. The previous decline below 11,598 points towards this rebound being a likely retracement before we turn lower once again.
Dow rebounds from Fibonacci support
The Dow Jones is an outlier here, with the index remaining within an uptrend from a wider perspective.
The retracement and respect of the 76.4% Fibonacci level (25,220) points towards further upside for the near term. Once again, this comes with caveats, as the sheer volatility evident over recent days proving that there is a strong chance that we could see the bears come back in at some point.
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. 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.
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, 1.2 on the Germany 40, and 0.4 on the US 500
- 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, 1.2 on the Germany 40, and 0.4 on the US 500
- 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.
