FTSE 100, DAX and Dow run into key resistance after overnight gains
FTSE 100, DAX and Dow gain ground overnight, yet bearish intraday patterns point towards a possible bearish turn coming into play.
FTSE 100 rallies into trendline resistance
The FTSE 100 has been gaining ground overnight, with the index pushing back into trendline resistance.
The recent existence of lower highs has been highlighted by this trendline, and the continuation of that bearish pattern is thus coming into question this morning. As such, there is a good chance we will reverse lower once again from here, with a break through 7197 required to bring about a more bullish mentality.
DAX upside could be capped at SMA resistance
The DAX has similarly managed to rebound into a notable area of resistance, with the 200-hour simple moving average (SMA) bringing about a possibility that we could start to see the index turn lower once again.
The recent trend of lower highs and higher lows signifies a general lack of direction, with a break through either 11,984 or 12,179 required to bring a more convincing directional bias. Until then, there is a good chance we will turn lower to continue this consolidation phase.
Dow expected to turn lower despite overnight gains
The Dow Jones has also been gaining ground overnight, with the index rallying back towards the highs seen throughout much of yesterday.
Once again, that is bringing us into a trendline resistance zone, where the expectation of continued lower highs comes into question. A break through trendline and 26,441 resistance would bring about a more bullish outlook. However, until then it makes sense to look for a bearish reversal from here to continue the downtrend seen through this week.
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.
