FTSE 100, DAX and Dow on the slide
The FTSE 100, DAX and Dow all head lower, but will it be a retracement or a reversal?
FTSE 100 slides below key support
The FTSE 100 has been dropping sharply since Monday’s peak, with the index breaking below the 7594 support level. That points towards a wider selloff emerging, with the next key support level approaching at 7557.
This wider selloff could come into play to maintain a symmetrical triangle pattern that has been playing out over the months. However, we would need to see a break below 7473 to confirm such a selloff. Until then, watch out for how we respond to this support level.
DAX reversing after rally into trendline resistance
The DAX is also turning lower after a recent rally into resistance. That trendline looks to have capped upside for the time being, with the price heading back into Fibonacci support.
A break below the 13361 support level would bring about a wider bearish picture. However, we need to see whether the index breaks or respects these Fibonacci levels in the meanwhile to determine whether we are looking at a retracement or reversal.
Dow pullback likely to be fleeting
The Dow Jones is also on the slide, yet to a lesser degree. The outperformance of US markets should ensure that this pullback is relatively short term in nature.
As such, watch for further downside, yet it will likely provide us with a retracement and buying opportunity rather than a wider reversal signal.
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.
