FTSE 100, DAX and Dow upside could be limited until we break resistance
FTSE 100, DAX and Dow gain ground, yet further short-term downside could come into play if we don’t break key resistance levels.
FTSE 100 turning higher after brief pullback
The FTSE 100 is on the rise this morning, following a sharp move lower in early trade yesterday. With the stochastic turning higher, there is a good chance we will see some upward momentum in early trade.
However, the relatively shallow nature of this recent pullback means we could see further downside come into play before long. A break through the 6324 level would signal a wider bullish picture coming into play. Until then, there is a good chance of further short-term downside following the recent break below 6219.
DAX starts to strengthen after recent pullback
The DAX has started to turn higher this morning, following a period of weakness from Tuesday's high. There is a good chance we are seeing a retracement of the recent rally from 12,807, yet while the index is turning higher this morning, the medium-sized pullback we have seen does point towards the possibility of another move lower before the bulls come back into play.
This morning has seen the price move back towards the notable 13,199 level, which would bring a more bullish outlook if broken. However, with the index starting to weaken from that point, further short-term downside could come into play from here as we head towards the 61.8% and 76.4% Fibonacci retracement levels. Nevertheless, a wider bullish outlook remains in play unless we see the price break below 12,807.
Dow Jones closes in on key resistance level
The Dow Jones has managed to rise into trendline resistance this morning, with the price pushing towards the key 27,180 resistance level from last Wednesday. Given the current respect of this ascending trendline, there is a chance we could see short-term downside.
However, should that occur, we would likely see another higher low come into play. As such, bullish positions look more attractive on a break through 27,180, or at a deep retracement level of the rally from 26,639. Conversely, a break below that 26,639 level would be required to bring about a more long-lasting bearish picture.
This information has been prepared by IG, a trading name of IG Markets Ltd and IG Markets South Africa 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.
Take a position on indices
Deal on the world’s major stock indices today.
- 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
Prices above are subject to our website terms and agreements. Prices are indicative only
