FTSE 100, DAX and Dow weakness unlikely to last
FTSE 100, DAX and Dow roll over after recent gains, yet the bulls are expected to return before long.
FTSE 100 starts to roll over after recent rally
The FTSE 100 has been on the rise over the past fortnight, with the index breaking into a marginal higher high yesterday. That continues the short-term uptrend in play, with the current pullback looking like a retracement before we move higher once again.
A break below 7421 would be required to negate this current uptrend. Until then, the 61.8%-76.4% Fibonacci zone (7470-7451) looks attractive for new bullish positions.
DAX turns lower from record highs
The DAX managed to surge into a record high yesterday, breaking through trendline and horizontal resistance along the way. We are seeing the index come off somewhat this morning, yet this looks like just another pullback within a bullish uptrend.
With that in mind, bullish positions are favoured unless the price breaks below Monday's low of 13,425. Support comes in several forms here, with the previous record highs of 13,540 and 13,601 representing the first notable levels to watch.
Dow Jones retracing after brief move into new highs
The Dow Jones also managed to reach record highs, with the index subsequently moving lower after that fleeting breach through 29,530.
This is likely to be a short-term phenomenon, with a break below 29,210 required to bring about a more bearish outlook for this index. Until then, it is likely we will see another leg higher before long.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. 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. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Seize your opportunity
Deal on the world’s stock indices today.
- Trade on rising or falling markets
- Get one-point spreads on the FTSE 100
- Unrivalled 24-hour pricing
See opportunity on an index?
Try a risk-free trade in your demo account, and see whether you’re on to something.
- Log in to your demo
- Try a risk-free trade
- See whether your hunch pays off
See opportunity on an index?
Don’t miss your chance – upgrade to a live account to take advantage.
- Get spreads from one point on the FTSE 100
- Trade more 24-hour indices than any other provider
- Analyse and deal seamlessly on smart, fast charts
See opportunity on an index?
Don’t miss your chance. Log in to take your position.
Live prices on most popular markets
- Equities
- Indices
- Forex
- Commodities
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
