FTSE 100, DAX and Dow expected to continue short-term rebound
FTSE 100, DAX and Dow have started to drift lower following overnight gains, with further upside likely for the short term.
FTSE 100 pauses after rise through resistance
Global markets have continued their recovery, with the FTSE 100 managing to make a tentative move through the 6860 level overnight. This points towards further upside, with the current move lower likely to be a retracement.
However, this whole recovery is expected to be a short-term phenomenon, with the spread of the coronavirus inevitably dragging stocks down again. For now, we are likely to be retracing the sharp sell-off seen last week, and there is still plenty of space to rise into as we continue that move. With that in mind, further upside looks likely over the short term, with a break below the 6750 level required to start bringing a more bearish picture back into play.
DAX gains ease, yet recovery likely to continue
The DAX has also seen a rally through to a new high of the week, with the index easing back this morning. We are yet to see any break below any support level, and thus this pullback is likely to be a precursor to further upside.
A break below the 12,024 level would be required to bring about a more bearish picture for the DAX.
Dow Jones pullback likely to resolve higher
The Dow saw a sharp rise yesterday, with the index gaining over 1100 points throughout the session. However, with the index currently drifting lower, we look to be in a retracement phase.
As such, a bullish outlook remains for the short term, with a break below 26,283 required to bring about a more bearish picture. Much like the other indices, this current bullish phase is deemed a precursor to further sharp market declines if the virus begins to make a material impact on major cities and businesses.
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.
