FTSE 100, DAX and Dow run into key resistance after overnight gains

FTSE 100, DAX and Dow gain ground overnight, yet bearish intraday patterns point towards a possible bearish turn coming into play.

FTSE 100 rallies into trendline resistance

The FTSE 100 has been gaining ground overnight, with the index pushing back into trendline resistance.

The recent existence of lower highs has been highlighted by this trendline, and the continuation of that bearish pattern is thus coming into question this morning. As such, there is a good chance we will reverse lower once again from here, with a break through 7197 required to bring about a more bullish mentality.

DAX upside could be capped at SMA resistance

The DAX has similarly managed to rebound into a notable area of resistance, with the 200-hour simple moving average (SMA) bringing about a possibility that we could start to see the index turn lower once again.

The recent trend of lower highs and higher lows signifies a general lack of direction, with a break through either 11,984 or 12,179 required to bring a more convincing directional bias. Until then, there is a good chance we will turn lower to continue this consolidation phase.

Dow expected to turn lower despite overnight gains

The Dow Jones has also been gaining ground overnight, with the index rallying back towards the highs seen throughout much of yesterday.

Once again, that is bringing us into a trendline resistance zone, where the expectation of continued lower highs comes into question. A break through trendline and 26,441 resistance would bring about a more bullish outlook. However, until then it makes sense to look for a bearish reversal from here to continue the downtrend seen through this week.

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 30, 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 30, 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

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.