FTSE 100, DAX and Dow expected to see further gains before long
FTSE 100, DAX and Dow expected to push higher before long, with recent weakness unlikely to last for long.
FTSE 100 expected to regain ground after Fibonacci rebound
The FTSE 100 has started to show signs of life again, with the recent retracement seemingly over after we touched and rebounded off the 61.8% Fibonacci support level at 7352.
That points towards the potential for a recovery, yet confirmation of that bullish view came with a rise through the first swing high at 7451. With that in mind, we are likely to push higher from here, with the price challenging the 7474 resistance level this morning. Only a break below 7352 would bring about a less bullish short-term view for the FTSE.
DAX breaks previous highs after recent retracement
The DAX is ahead on its recovery, with the index reaching fresh highs overnight after a rally off a deep retracement at the start of the week.
That rise above 13,810 points towards a continuation of the wider bullish trend. With the price struggling to really gain traction, we could see short-term declines for another pullback. Should that occur, it would be perceived as a short-term phenomenon, with a break below 13,655 required to negate the bullish outlook that remains in play.
Dow Jones easing back from trendline resistance
The Dow Jones rally is coming under pressure following a rally into trendline resistance, with the index starting to head lower. This comes off the back of a bullish tilt from the 76.4% Fibonacci support level on Tuesday.
We could easily see another pullback into that Fibonacci support level, yet ultimately this period of weakness would have to see prices fall below 28,957 to have wider bearish consequences. Until then, there is a good chance we are seeing a retracement phase which ultimately resolves with another move back into the 29,570 peak.
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
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.