FTSE, DAX and Nasdaq on the rise, as the recovery phase looks to continue
The FTSE, DAX, and Nasdaq turn upwards once more, bringing expectations of further strength.
FTSE 100 surges higher towards resistance
The FTSE 100 managed to push sharply higher once again yesterday, with the index rising into a fresh two-month high.
Set within a wider trend of lower highs, this rebound looks likely to represent a retracement before we head lower once again. However, the higher we get, the more likely we are to see a bullish breakout through the 7577 swing-high.
Nonetheless, for now we are looking for a potential reaction from the descending trendline (provisional) drawn from the June and August peaks.
Given the risk that this current rise continues, another method to lessen the risk involved in looking for short positions here would be to wait for a breakdown through 7292 as signal that the short-term pattern of higher lows has broken down.
Until that happens, there is still clearly strong upside momentum playing out here.
DAX reaches five-month high
The DAX has managed to push tentatively through the recent high of 14442, bringing about a fresh five-month high for the index.
Coming off the back of a period of consolidation below last Tuesday's high, the break through resistance does signal the potential for another bout of gains to build on the recent two months of gains.
Keep an eye out for German PMI data released at 08.30 as a source of volatility. However, for now, it looks likely that we will see further upside to follow through on this recent break.
A move back below the 14124 swing-low would be required to signal a potential downside move coming into play.
Nasdaq turns upwards to signal potential year-end rally
The Nasdaq has started to tentatively turn upwards once again, following a week of losses that took some of the heat off the index.
This index is likely to be the main casualty when market sentiment does take the turn once again, but it can also benefit the index with a substantial upside move when markets take a more constructive view.
For the DAX, any short-term gains do look to represent a retracement of the 13722-10432 until we see that 13722 level taken out. However, for the near-term, there is a distinct possibility that we see price rise into a deeper upward retracement.
A push through the 11808 level would bring a signal that we are set for another upward phase here.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
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. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
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
See more forex live prices
See more shares live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
See more indices live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.
