FTSE 100, DAX, and Dow expected to build on gains
FTSE 100, DAX, and Dow are drifting lower, yet with wider uptrends still in play, further upside looks likely before long.
FTSE 100 continues to grind lower in retracement phase
The FTSE 100 has been drifting lower since Thursday’s peak, with the index seemingly in retracement mode following a period of gains around the turn of the month.
Thus, while we could see further short-term downside, it would be unlikely to signal the beginning of a wider bearish reversal for the index. A break below 7370 would signal such a move, with further short-term downside looking like a buying opportunity unless that threshold is broken. To the upside, a break through 7572 would bring about a resumption of the bullish trend.
DAX breaks through short-term support level
The DAX has declined through the 12,482 support level overnight, with the index now seemingly retracing the wider rally from 12,169.
Once again, the wider bullish trend remains intact, and thus while we could see further short-term downside, it is likely to be a retracement of the 12,169-12,662 rally. Conversely, a rally through 12,552 would bring about a more bullish short-term picture for the pair.
Dow continues to decline, as index retraces into support
The Dow Jones is continuing its declines, as the index falls back towards the next notable level of support at 26,615.
However, it doesn’t look like we are retracing that 26,615-27,034 rally, but instead the 26,433 level represents the point we are retracing from. That means we could see further downside for the short term, yet unless the price breaks below the 26,433 level, a bullish reversal looks likely before long. With the price currently trading around the 61.8% Fibonacci retracement level (26,663), a break below here points towards a move into the next notable support levels of 26,615 and 26,575.
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.
