FTSE 100, DAX and Dow retraces after recent surge
FTSE 100, DAX and Dow ease back after recent surge, yet bullish outlook remains in tact.
FTSE 100 rally starts to ease after rise through 6264
The FTSE 100 saw a strong start to the week yesterday, with the stock finally managing to break through the 6264 resistance level to bring about a two-week high. The break through resistance also appears to signal a bullish exit from a symmetrical triangle formation that has been in play over the course of June.
With that in mind, further upside looks likely, where the current pullback is expected to provide a retracement of the rally from 6135. As such, a bullish outlook is in place, with a break below 6135 required to negate this view. Watch out for Fibonacci support around 6206 and 6179 to provide a potential bullish reversal area if we see further short-term downside.
DAX eases back, but uptrend remains intact
The DAX has seen some downside today, following yesterday's rebound into the highest level in almost a month. That rally served to continue the intraday uptrend in place since late June, with higher highs and lows still in play unless we see a break below the 12,473 level.
Until then another move higher looks likely for the index. If we do see another push higher from here, the ultimate break through 12,939 is important in establishing a new wider bullish continuation signal for the index. Bear in mind that if we did see a decline through 12,473 support, it would simply look to bring a wider retracement of the rally from 11,955 into play.
Dow Jones turns lower from trendline resistance
The Dow is similarly easing back, following a rally into trendline resistance overnight. This looks largely like a retracement and precursor to further upside, with a break below the 25,564 level required to negate some of that bullish sentiment.
That overnight rally also took the index into the 26,423 level, which means we are now seeing flatlining highs rather than the lower highs that have been in play over the past month. As such, the current weakness we are seeing looks like a potential buying opportunity until the index drops below 25,564.
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.
