FTSE 100, DAX and Dow turning lower after recent rebound
FTSE 100, DAX and Dow gains could come under pressure once again amid ongoing trade worries.
FTSE 100 consolidating after recent rebound
The FTSE 100 has failed to really gain traction like its global counterparts, with the ascent of the pound holding back the potential gains for this market. We are trading around the 7196 level, which represents the low from 21 November.
While we are seeing some downside in early trade, we would need to see a break below 7132 to signal a continuation of this wider bearish trend. Otherwise, look for a break through 7196 to signal a push upwards from here.
DAX turning lower after recent retracement
The DAX saw a strong surge over the course of yesterday's session, with the index rising towards the 61.8% Fibonacci retracement level. The wider picture remains bearish given the breakdown through the 13,040 support, and thus there is a good chance we will see the index weaken before long.
That appears to be happening, with a bearish engulfing formation potentially signaling the end of this rebound. As such, watch for further downside, with the 13,099 support level providing the first hurdle to overcome within a potential resurgent bearish story.
Dow Jones showing signs of weakness at Fibonacci resistance
The Dow Jones has similarly regained ground over the past two days, with the index moving into the 76.4% Fibonacci resistance level.
The first failure to break through that level has been doubled down upon with early trade today seemingly failing to create a new high. Watch for a breakdown below 27,612 for a bearish signal from here, with a rise through 27,855 required to negate this bearish outlook.
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.