Overnight bounce fizzles out for FTSE 100, DAX and Dow
Indices bounced overnight, but the gains are coming under threat in early trading this morning.
FTSE 100 stuck near overnight lows
The FTSE 100 has stabilised for the time being, rallying from the 7130 level that acted as support in December 2019.
Having seen the initial bounce, we now wait to see whether the price can hold the low from yesterday and carve out further higher lows and then higher highs above 7200. Further declines below 7130 bring 7000 into view, the lows from August and October.
DAX struggles to hold overnight gains
For the time being, the selling has paused at 13,000, the DAX bouncing from this level overnight.
Now the rally needs to continue, moving above 13,200 and holding above the overnight low. A key indication will be whether it can move and hold above the 50-hour simple moving average (SMA) of 13,290. Further losses below 13,000 target 12,653 and the 200-day SMA.
Dow looks to recover from sell-off
Having seen 1500 points wiped off the Dow Jones in a week, there are signs of a small recovery.
So far, the overnight bounce has stalled at 28,200, although if it can continue to hold above yesterday’s low at 27,860. Below this, 27,400 comes into play. A good first step in any recovery would be a move back above the 50-hour SMA, currently 28,522. If it can hold above this indicator, then a more durable low may form.
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.
