Skip to content

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved.

FTSE 100, DAX and Dow weakening after recent rebound

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

Video poster image

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.

FTSE 100 chart Source: ProRealTime
FTSE 100 chart Source: ProRealTime

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.

DAX chart Source: ProRealTime
DAX chart Source: ProRealTime

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.

Dow Jones chart Source: ProRealTime
Dow Jones chart Source: ProRealTime

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
Find out more

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

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

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 Tuesday 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…

<h3>How much does trading cost?</h3>
<h3>Find out about IG</h3>
<h3>Plan your trading</h3>

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.