FTSE 100, DAX and Dow rally towards key resistance
FTSE 100, DAX and Dow rebound into crucial resistance levels, with today's price action key to guiding forthcoming sentiment.
FTSE 100 rolls over from key resistance level
The FTSE 100 rally has taken us into the crucial 6262 resistance level overnight, with the index starting to weaken from that point. A break through that level would bring about a bullish signal, building on the recent creation of higher lows around the 61.8% Fibonacci zone.
Interestingly, the index has found support on the notable 6216 swing low level, where a break below that point would signal the potential for another period of downside. As such, the short-term direction will be guided by the ability to break either 6216 or 6262.
DAX eases back from notable resistance zone
The DAX has similarly started to weaken from a crucial area of resistance, with the 12,350-12,367 zone providing a potential bullish breakout area.
However, with the price turning back towards the 12,225 swing low, we will be looking for a break through either at 12,225 or 12,367 to providing the short-term outlook for this index.
Dow Jones turns lower as rally falls short
The Dow Jones has failed in its bid to recover back into the 25,802 resistance level. Ultimately, we need to see that level broken to bring about a bullish reversal signal after recent declines.
However, that bearish trend remains intact unless we see 25,802 broken. With the stochastic dropping below the 80 threshold and the price creating a short-term topping pattern upon breaking below 25,598, there is a chance we see further downside from here. A break through 25,802 would be required to negate this bearish trend.
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.
