FTSE 100, DAX and Dow decline into key support

FTSE 100, DAX and Dow declines bring price into crucial support levels.

FTSE 100 declines within recent uptrend

The FTSE 100 has been on the slide, with the price falling sharply in response to an initial break below 7389 support.

For the most part this looks like a retracement of the 7213-7440 rally, thus bringing the 7300 and 7266 Fibonacci support levels into play. Those deep retracement levels look attractive for long positions, with a break below the 7213 level required to negate this current bullish outlook.

DAX fails to break through key resistance

The DAX fell short once again, having attempted to break through 12,496 for the third time in as many weeks.

This current decline could be part of a consolidation phase, yet a break below 12,142 would bring about a more bearish picture following recent gains.

Dow declines into confluence of support

The Dow Jones has also been on the slide, with the price declining into a confluence of support yesterday.

That crossroads between the 200-period simple moving average (SMA), descending trendline, and the 30 August peak with be a crucial hurdle this market has to overcome for further downside. With recent losses bringing us into oversold, there is a chance we could see the bulls start to take control for the short term. Given the previous retracements within this downturn, it is highly likely we will see such a short-term rebound. However, a break below this zone of support would look to continue the steep sell-off seen yesterday.

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
liveprices.javascriptrequired
liveprices.javascriptrequired

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

liveprices.javascriptrequired

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.