Levels to watch: FTSE 100, DAX and Dow
Recent gains have started to falter, with stocks turning lower in early trade today. However, will the short-term uptrend dominate, or will the wider bearish trend come into play once more?
FTSE 100 rallies back into Fibonacci resistance
The FTSE 100 has rallied back into the 7000-mark once more, with the 76.4% Fibonacci retracement coming into play again.
The wider downtrend would require a break through 7146 to negate, and until then there is a chance we could turn lower once more. Given we are currently respecting that Fibonacci resistance, it looks likely that we will see the index drift lower, yet we would need a break below 6798 to bring about a wider bearish view once more.
DAX rolling over after recent rally
The DAX has seen a sharp ascent since breaking through the 10,987 resistance level.
From a wider perspective, a rally through 11,570 would provide confidence that we have bottomed out. Until then, there is still a chance that we are retracing the wider 11,570-10,202 sell-off. The 76.4% retracement is that worth noting, with the price having started to weaken from that region. Thus, there is a good chance that we will see further downside coming into play today, with a break through Friday’s high required to start building on the possibility that we are going to head towards that 11,570 mark.
Dow continues to gain ground
The Dow Jones has remained on a bullish path, with the index hitting a new five-week high on Friday. The wider downtrend remains intact until we break through the 26,071 level.
However, until then, we are waiting for a signal of whether this is a retracement or not, with the respect of the 76.4% retracement providing us with clues. Thus, while the continued creation of higher lows does point towards further upside, watch for Fibonacci resistance at the 25,002 level as a potential source of bearish movement.
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.
See an opportunity to trade?
Go long or short on more than 13,000 markets with IG.
Trade CFDs on our award-winning platform, with low spreads on indices, shares, commodities and more.
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.
