FTSE 100, DAX and Dow pause within recent uptrend

FTSE 100, DAX and Dow start to pause after another day of strong gains yesterday.

FTSE 100 pulling back from key resistance

The FTSE 100 is easing back this morning, following on from a rally into the 6211 resistance level from late April. The recent uptrend remains intact given the continued creation of higher highs and lows, yet we could see the index pull back as we respect the 6211 level.

Nevertheless, unless we see the index fall below 6040, such a pullback would likely represent a short-term retracement rather than a wider reversal. As such, we could see short-term downside today, yet a bullish trend is in place unless that 6040 level is broken.

DAX breaking below trendline support within recent uptrend

The DAX has started to slow its ascent, with the price falling below a short-term ascending trendline. With the stochastic looking likely to break back below the 80 mark, momentum does seem to be rolling over just as the US-China issue reaches a head.

With that in mind, there is a chance we could see short-term downside in what looks likely to be a short-term retracement. As such, any short-term weakness looks like a brief pullback, with a break below 11,429 required to bring expectations of a more protracted retracement of the rally from 10,865.

Dow Jones remains elevated after recent surge

The Dow Jones has remained elevated over the course of this morning, coming off the back of a surge into the 25,800 level.

The uptrend remains intact whether or not we see a short-term pullback, with a bullish outlook in play unless we see a break below the 25,007 support level.

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
liveprices.javascriptrequired
liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

liveprices.javascriptrequired

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.