FTSE 100, DAX and Dow retracements bring buying opportunity
FTSE 100, DAX and Dow break higher overnight, yet morning losses could bring good buying opportunities.
FTSE 100 starts to retreat after overnight gains
The FTSE 100 has been on the rise of late, with the price managing to break resistance and hit the highest level in over a month. However, we are starting to see the index drift lower this morning, pointing towards another retracement phase.
A break below 7237 would raise the likeliness of a wider period of downside. Until then, there is a good chance that the bulls will come back into play with eyes turning to the 200-day simple moving average (SMA) alongside the 61.8% and 76.4% Fibonacci support levels.
DAX rally continues, yet slight weakness could bring buying opportunity
The DAX has been a big outperformer of late, with the index continuing to trend higher overnight.
The pullback we are currently seeing points towards a potential buying opportunity, with a break below 11,996 required to negate the bullish short-term theme. The existence of support and resistance at that level adds to its value. Until that happens, this short pullback looks like a buying opportunity.
Dow easing back after notable bullish break
The Dow Jones saw a nice surge overnight, with a ramp up in US-China trade talks in October raising sentiment. However, we are now seeing those gains fade in what looks like a retracement phase.
The overnight rally took the price through the 26,551 high, thus reaffirming the symmetrical triangle breakout seen last Friday. With that in mind, this period of downside looks like a buying opportunity, with a break through 25,973 ultimately needed to bring about a new bearish picture. Until then, this move looks like a precursor to further upside.
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.
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 30
- The only provider to offer 24-hour pricing
Live prices on most popular markets