FTSE 100, DAX and Dow sell-off begins to ease
FTSE 100, DAX and Dow has started to regain ground, following a week of incredible losses
FTSE 100 rebounds from historical low
The FTSE 100 has managed to bounce from the crucial 7078 support level this morning, following on from an incredible week of downside which culminated in a huge move lower after the close yesterday.
However, with price respecting the June low of 7079, it looks like we could be set for a bullish rebound if only to retrace some of the recent losses. That low also comes in at the 200-week simple moving average (SMA), which has been a reliable support level throughout recent years. With that in mind, further upside looks likely for the short term. However, there is obvious risk with such a play due to the heightened volatility and the distance from a reasonable stop-loss.
DAX rebounds after recent decline
The DAX has finally managed to find some buyers following a sharp decline throughout the past two-weeks.
That took the index below the crucial 11,598 support level, pointing towards further downside to come. However, for the time being, we are in retracement mode, which could be substantial given the recent declines. As such, further upside looks likely for the short-term. The previous decline below 11,598 points towards this rebound being a likely retracement before we turn lower once again.
Dow rebounds from Fibonacci support
The Dow Jones is an outlier here, with the index remaining within an uptrend from a wider perspective.
The retracement and respect of the 76.4% Fibonacci level (25,220) points towards further upside for the near term. Once again, this comes with caveats, as the sheer volatility evident over recent days proving that there is a strong chance that we could see the bears come back in at some point.
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