FTSE 100 and DAX show signs of a reversal while Dow consolidates

The FTSE 100 and DAX looks set for a bullish resurgence after tentative signs of a reversal. Meanwhile, the Dow is pausing in the wake of a rally into record highs.

FTSE 100 looks set for bullish phase

The FTSE 100 has been consolidating overnight, coming off the back of a crucial break through the 7544 swing high.

That new higher high points towards a likely resurgence coming into play before long. With price in a shallow retracement phase, a break through the 7549 would looks like a good buying opportunity. Only a break below the 7484 low would bring about a wider bearish picture once more.

DAX breaks key resistance to bring bullish outlook

The DAX managed to break through 12,888 swing high yesterday, bringing about a heightened chance that we are seeing the beginning of a short-term bullish reversal.

Coming off the back of a retracement into the 61.8%-76.4% retracement zone, this looks like a perfect time for the market to start turning higher once again. For the short term, we could see price drift lower, yet that would look like a buying opportunity unless we see a break below the 12,294 lows. Until then, it looks attractive to buy the DAX on a around the 12,328-12,347 zone, or on the rally through 12,424.

Dow consolidates after recent rally

Interestingly, the Dow Jones is showing a very different picture, with prior gains giving way to a phase of consolidation.

his could be the time where we see the index retrace some of those gains. However, we would need to see a break through the 27,291 swing low to bring about such a view. Until then, there is a good chance we will simply consolidate until enough energy is built up to embark on another leg higher.

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.