FTSE 100, DAX and Dow fall towards key support
FTSE 100, DAX and Dow decline into key support levels, with further losses likely if broken.
FTSE 100 continues its decline after brief retracement
The FTSE 100 is on the slide this morning, with yesterday's rebound faltering as expected. This has brought about another period of weakness to build on the failed attempt to break through the 6324 level.
With the mid-July sell-off taking the index back below the 6026 lows, there is a risk that we could see a similar thing here with a break back below the 5995 level established on 10 July. Conversely, this could be a retracement of the rally from 5995, where the 76.4% Fibonacci support levels provides the final hurdle to overcome in this bearish move.
As such, further downside looks likely, yet the reaction to 6072 and 5995 support levels will be key.
DAX declines take us close to key support
The DAX declines have continued, with the price falling below the 76.4% Fibonacci retracement level. That points towards a potential decline through the key 12,807 swing low from Monday.
Ultimately, we would need to see that low broken to signal a wider bearish move coming into play.
Dow Jones back at key support amid recent sharp decline
The Dow Jones is on the back foot once again today, with the index building on recent losses to fall back to the key 26,441 level. A break below that threshold provides us with a bearish double top formation.
As such, much of the forthcoming outlook will be dictated by whether to break below the 26,441 level or not.
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.