FTSE 100, DAX and Dow weakening after recent rebound

FTSE 100, DAX and Dow gains could come under pressure after rallying into resistance zones.

FTSE 100 struggling to break through Fibonacci support

The FTSE 100 has managed to surge higher after slumping into the 76.4% Fibonacci support level at 5861.

With the price attempting to break into the 6062 level this morning, we are seeing it struggle to extend the bullish break from consolidation that looked to be taking shape. As such, the bias will be determined by whether we break back below the 5996 swing low established yesterday, or up through the 6062 and 6086 resistance levels.

DAX starts to weaken from Fibonacci resistance

The DAX has rallied into a notable confluence of resistance, with the 76.4% Fibonacci level (12,737) coming in just below the head and shoulders neckline of 12,744.

With the price starting to weaken from this point, there is a chance we could see the index weaken once again. The stochastic is starting to roll over from overbought territory, highlighting that possibility. As such, the outlook will be determined by whether we break through 12,614 support or the 12,737 level.

Dow rallies into deep retracement zone

The Dow Jones has been on the rise since Friday's low, with the index pushing through resistance to move into a 11-day high this morning. However, we are not out of the woods yet, with that rally having taken us into the deep retracement zone between the 61.8% and 76.4% Fibonacci levels.

With that in mind, there is a potential for another turn lower, especially given we are seeing a bearish stochastic cross in overbought territory. With that in mind, watch for a move back below the 80 threshold on the stochastic to provide a possible bearish signal. Conversely, we would need to see a break through the 26,886 resistance level (76.4% Fibonacci) to signal a potential push back towards 27,164 resistance.

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

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.