FTSE 100, DAX and Dow consolidate within wider uptrend

FTSE 100, DAX and Dow retain their uptrends despite recent signs of a potential bearish picture emerging.

FTSE 100 continues to consolidate after recent declines

The FTSE 100 has been pulling back since the Tuesday peak, when the index hit the 76.4% Fibonacci resistance level. The recent deep retracement towards the 7240 level signals a potential bearish picture coming into play.

However, we would need to see a break below 7257 and 7240 to bring about a wider bearish picture. Alternately, a break up through the prior peak and Fibonacci resistance around 7391 would start to bring about a more bullish outlook.

DAX continues to consolidate after trendline break

The DAX has been showing signs of a potential bearish turn of late, with the price breaking below an ascending trendline and falling back into the 13,142 support level. We have since seen a rise back into trendline resistance, with the index turning lower since.

The key here is which direction we break from this consolidation zone. A decline below 13,142 would bring a bearish phase into play, whereas a rise through 13,303 would bring about a bullish continuation signal.

Dow tentatively breaks into new high

Dow Jones has managed to head into a new record high overnight, with the index rising through the 27,775 high. Coming off the back of a consolidation phase, the failure to break below the 27,501 support level highlighted the continuation of the recent uptrend.

A break below that support level would point towards a possible bearish reversal. However, until that happens, there is a high likelihood of another leg higher for the Dow.

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.

Please see important Research Disclaimer.

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

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


Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

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.