FTSE 100, DAX and Dow rally into key resistance
FTSE 100, DAX and Dow on the rise, as the markets reach key hurdles in their bid to break higher.
FTSE 100 rallies back into resistance zone
The FTSE 100 has managed to regain ground since Friday's losses, with the index rising back towards a zone of resistance. That 6300-6320 region has capped price action over the past week, bringing a consolidation phase after the mid-June surge seen from the 15 June lows.
With the stochastic oscillator tightening into a symmetrical triangle alongside this consolidation in the price action, we are awaiting the next breakout from this zone. With that in mind, the bullish continuation signal comes with a break through the 6320 peak from Friday. Until then, be aware that the current rally is at risk of another turn lower to continue this consolidation phase.
DAX rallies into key breakout level
The DAX has similarly rallied into key level this morning, with the rise into 12,485 bringing about a potential bullish breakout. Coming off the back of a recent period of consolidation, the gains we are seeing this morning highlight a potential next leg higher if this level can be overcome.
With the stochastic into overbought, there is a chance we could roll over from this level. Thus, it makes sense to look for a closed candle through 12,485 to bring about a bullish continuation signal from here.
Dow Jones pushes through Fibonacci resistance
The Dow Jones has also been on the rise this morning, despite sharp volatility overnight. The recent rise has taken us beyond the 76.4% Fibonacci retracement level at 26,222, with the price rising towards the upper echelons of a descending standard deviation channel.
Ultimately, we need to see the 26,448 level broken to bring about a fresh bullish continuation signal. Until then, we are at a key hurdle here that needs to be overcome if we are to see another bullish breakout phase.
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.
