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.
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
- Forex
- Shares
- Indices
See more forex live prices
See more shares live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
See more indices live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.
