CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved.

FTSE 100, DAX and Dow rebound may be short-lived

​FTSE 100, DAX and Dow regain ground, yet the recent bearish breakdowns point towards a possible bearish picture coming back into play.

FTSE 100 rebounds into 76.4% Fibonacci resistance

The FTSE 100 has seen sharp gains over the course of the past two trading days, with the index regaining much of the ground lost in the early part of the week. This has taken us into the 76.4% Fibonacci resistance level, which brings about a possibility that the index reverses lower from here.

Given the recent trend of lower highs and lows, it would come as no surprise to see the index reverse lower here. This bearish outlook holds unless we see a break above the 7405 resistance level. For a bearish confirmation signal, watch for the drop below 80 on the stochastic oscillator.

DAX rebounds, yet prior breakdown signals potential decline

The DAX also been on the rise, with the index trading back within its consolidation zone that was evident throughout mid-November.

However, the prior decline below 13,142 and 13,109 signals the possibility that this is a retracement before we turn lower once more. As such, watch for potential reversal signals from this recent retracement, with a break through 13,375 required to negate that bearish outlook.

Dow rebounds after recent pullback

The Dow Jones is also on the climb, following a recent decline into 27,672 support. The wider trend is overwhelmingly bullish, and thus a rally through 28,159 would bring a continuation signal.

Until then, it is worthwhile noting the current respect of the 61.8% Fibonacci resistance level. A break back below 80 in the stochastic could bring a bearish sell signal over the short term.


The information 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 Bank S.A. 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 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.

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, 1.2 on the Germany 40, and 0.4 on the US 500
  • 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, 1.2 on the Germany 40, and 0.4 on the US 500
  • 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

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired
liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.