FTSE 100, DAX and Dow rebound from key support
FTSE 100, DAX and Dow push higher, yet overbought signals point towards a potential easing of this rally before long.
FTSE 100 regains ground from Fib support
The FTSE 100 has been moving higher since falling back into Fibonacci support, with the 76.4% level providing a backstop to losses. However, we are not out the woods yet, with the subsequent rally taking us into overbought territory on the stochastic.
This could point towards some form of consolidation or pullback in the offing if we see the stochastic fall back below the 80 level. For now, the wider bullish trend still remains in play unless we break back below the 5666 level. However, the steep declines of last week leave a mountain to climb if we are to see this index regain the previous peaks of 6211.
DAX breaks higher from trendline support
The DAX has turned higher following a rebound from the region of an ascending trendline dating back to mid-April. The hourly chart highlights a more granular picture, with the break through 10,609 pointing towards a potential bottom having been established for now.
Much like the FTSE 100, we still have plenty of upside required to continue the wider uptrend with a break through 11,342. For now, there is a good chance we continue to regain ground as we build on the apparent reversal signals seen on the intraday charts.
Dow Jones surges higher, with resistance up ahead
The Dow Jones has also been on the rise, with the index pushing higher after finding support on the 76.4% Fibonacci support level. This is now taking us towards a crucial resistance level around 24,031.
With the stochastic rolling over from overbought territory, a breakdown back below 80 could signal the beginning of a pullback over the short term. However, further upside looks likely following this rebound from Fibonacci support, with a break back below the 23,324 level required to bring a wider bearish picture into play.
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.