FTSE 100, DAX and Dow decline towards critical support levels

​​FTSE 100, DAX and Dow start to roll over, yet key support level remain key hurdles for the bears.

FTSE 100 rolls over after rally into Fibonacci resistance

The FTSE 100 has been weakening from the 76.4% Fibonacci level, with the index having retraced in the wake of a bearish break below 5571 last Wednesday. That seemingly set us up for a potential move lower from here, with the break below 80 on the stochastic pointing towards a bearish leg lower.

With that in mind, the big question is whether we break below 5529 to bring about another bearish signal. With the decline in momentum still playing out, further downside does look likely from here. This bearish short-term picture would be negated with a rally up through 5846 resistance.

DAX weakens from trendline resistance

The DAX has also been weakening after a failed bid to create a new high, with the index finding resistance on an ascending inside trendline. Once again the question is whether we can break below the key 10,152 support level to bring about a more reliable bearish picture for the index.

Until then, there is a chance we could be retracing as a precursor to further highs. With that in mind, while momentum highlights the potential for further downside, this bearish outlook would gather strength if 10,152 is taken out. To the upside, a rally through the 10,773 level would be needed to maintain the wider bullish trend.

Dow Jones approaches key support level

The Dow has seen significant declines overnight, with the index pushing towards the crucial 23,089-23,208 zone of support.

The key question for today is whether that area holds up, with a break below that zone signaling a likely bearish phase coming into play. As such, watch out for the ability or inability to break below 23,089 to signal whether we should be bullish or bearish from 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.

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.