Levels to watch: FTSE 100, DAX and Dow
Indices look at risk of another bearish turn from here, with recent upside expected to falter before long.
FTSE 100 rallies from Fibonacci support
The FTSE 100 has been gaining ground from the 76.4% retracement area, coming off the back of a period of steep losses last Friday. The gradual nature of these gains points towards a potential pullback before long, yet this could provide us with a higher low to then start feeling more bullish.
A break back below the 7146 low would signal a more bearish picture coming into play. In particular, a break below 7076 would bring about a wider bearish picture.
DAX gains look likely to falter
The DAX has been gaining ground off the back of those steep losses last week, with the index moving back into overbought territory on the stochastic oscillator. The break below 11,401 support last week, we are likely to see the DAX turn lower again before long.
With the price starting to weaken from the 11,473 resistance level, there is a chance of short-term losses. However, we would need to see the index break below 11,300 to provide a more secure bearish outlook. Until then, there is a chance that this rebound will be longer lasting before the bears come back into play.
Dow rebound expected to fall short
The Dow Jones has been gaining ground throughout the beginning of the week, with the index moving into the 61.8% and 200-simple moving average (SMA) on the four-hour chart.
The creation of lower highs over the past week points towards a likely bearish turn from here. A break above 26,011 would negate that bearish view, with downside expected unless that upward break occurs.
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
