Levels to watch: FTSE 100, DAX and Dow
The indices are turning lower, with an overnight rally into the 76.4% Fibonacci retracement level sparking a downward shift.
FTSE 100 turning lower from Fibonacci resistance
The FTSE 100 has tumbled once more following a sharp resurgence in the pound overnight.
This has seen the market turn lower from a second 76.4% Fibonacci retracement level, with the index now moving into a key support level. A break below the 7076 support level would provide us with a bearish continuation signal, where 7039 represents the next level of support.
DAX turning lower after deep retracement
The DAX has started to turn lower from the 76.4% retracement level, hinting at another potential bearish shift for the index.
The breakdown from a rising wedge formation signaled a likely bearish phase coming into play, with the subsequent rally looking like a retracement. With the index turning lower, there is a good chance we will see a break back below 11,401 to confirm that we are due a wider retracement of the 10,862 rally. A break through 11,692 would be required to negate this bearish outlook.
Dow reversing lower from prior breakdown level
The Dow Jones is similarly reversing to the downside after a strong rebound at the start of the week.
This took us back into the prior breakdown level of 25,763, which is now being respected as resistance. This has been accompanied by the 76.4% retracement level, pointing towards a bearish shift from here. As such, watch for a downward move, with a break through 26,168 required to negate that bearish outlook.
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 40
- The only provider to offer 24-hour pricing
Live prices on most popular markets
- Forex
- Shares
- Indices
