FTSE 100, DAX and Dow declines likely to be limited
FTSE 100, DAX and Dow declines could be limited as wider uptrends remain intact.
FTSE 100 turning lower once again
The break below the 7548 highlighted the potential retracement of the wider move, and given the respect of that 76.4% level there is a possibility that the bulls will come back into play before long. However, with the price turning lower again this morning, it will be key to see whether the price falls below the 7524 low and Fibonacci level. From a wider perspective, a break below 7460 would be required to break from the uptrend seen throughout June and July.
DAX consolidates after sharp decline
The DAX has seen a volatile week, and even though we have seen a general lack of direction following Tuesday’s sharp decline, we are seeing significant sized moves within the subsequent consolidation.
There is a chance that this is a precursor to a short-term upward retracement, yet we need to see the price break through 12,226 to bring expectations of that upward phase.
Dow decline looks like potential retracement phase
The Dow Jones saw sharp losses yesterday, with the index falling below 27,068 range bottom.
That brings us into a wider retracement of the 26,657-27,402 rally. With that in mind, a bullish turn does look likely before long, with a break below that 26,657 swing low required to bring about a wider bearish picture. Watch for a break through the 26,907 overnight high as a signal of impending upside.
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