FTSE 100, DAX and Dow break sharply lower in early trade
FTSE 100, DAX and Dow weaken in early trade, with key support levels broken to highlight potential further downside to come.
FTSE 100 breaks key support after recent gains
The FTSE 100 has broken back below the 6124 support level this morning, pointing towards the potential for further downside after recent gains.
Given the recent consolidation, this could be another decline into the 6080-6100 region of support before we turn higher once again. As such, while the short-term picture looks bleak, we would need to see the lows of the week broken to signal a likely wider period of downside coming into play.
DAX breaks key support after recent Fibonacci rebound
The DAX has failed to maintain its bullish trajectory after finding support on the 61.8% Fibonacci level at 12,750. We have since seen a sharp break back below that support level, with the next Fibonacci support level at 12,616 now coming into play.
As such, further downside looks likely over the near term, but there is a strong chance we are looking at a retracement phase here, the 76.4% Fibonacci support level providing the kind of area that could see the index stabilise once more. Watch out for a break up through the 20 threshold in the stochastic as a sign that this bearish momentum is coming to an end.
Dow reversing lower from Fibonacci resistance
The Dow Jones is on the slide once again this morning, with the recent rally finding resistance on the 76.4% Fibonacci retracement level.
This move lower points towards a potential continuation of the recent trend of lower lows. As such, there is a strong chance we see further downside over the short term, yet the question of whether we establish another lower low or not could be key in determining whether this recent downtrend is going to continue or not.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
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. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
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
See more forex live prices
See more shares live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
See more indices live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.
