Levels to watch: FTSE 100, DAX and Dow
Overnight gains for stock markets have done little to change the outlook, with the recent breakdown for FTSE 100, DAX and Dow all expected to resume.
FTSE 100 rally likely to falter given recent downside break
FTSE 100 has been gaining ground this morning, following on from a bearish move at the start of the week.
The prior break below 7310 points towards the intraday uptrend being over and signals a high chance that the current rally will be a lower high. As such, the index looks likely to turn lower rather than break through the 7371 peak. With the 76.4% currently being respected, watch for a potential bearish shift from here, where a rise through 7371 would be required to negate this bearish view.
DAX upside unlikely to last for long
DAX is also gaining ground, but the creation of lower highs and lower lows is clear.
Given the size of the decline yesterday, we could see further upside over the coming hours. However, as long as we do not break through the 12,267 swing high, another bearish leg lower looks likely before long.
Dow turning back into downtrend
Dow Jones is showing the same picture, with the break below 25,627 signaling a high likeliness that this current rally is a retracement rather than another surge into a higher high.
As such, watch for a bearish shift from here, where a break through the 25,951 peak set on Friday would be required to negate this bearish outlook.
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
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
