Levels to watch: FTSE 100, DAX and Dow
The indices are turning lower, with an overnight rally into the 76.4% Fibonacci retracement level sparking a downward shift.
FTSE 100 turning lower from Fibonacci resistance
The FTSE 100 has tumbled once more following a sharp resurgence in the pound overnight.
This has seen the market turn lower from a second 76.4% Fibonacci retracement level, with the index now moving into a key support level. A break below the 7076 support level would provide us with a bearish continuation signal, where 7039 represents the next level of support.
DAX turning lower after deep retracement
The DAX has started to turn lower from the 76.4% retracement level, hinting at another potential bearish shift for the index.
The breakdown from a rising wedge formation signaled a likely bearish phase coming into play, with the subsequent rally looking like a retracement. With the index turning lower, there is a good chance we will see a break back below 11,401 to confirm that we are due a wider retracement of the 10,862 rally. A break through 11,692 would be required to negate this bearish outlook.
Dow reversing lower from prior breakdown level
The Dow Jones is similarly reversing to the downside after a strong rebound at the start of the week.
This took us back into the prior breakdown level of 25,763, which is now being respected as resistance. This has been accompanied by the 76.4% retracement level, pointing towards a bearish shift from here. As such, watch for a downward move, with a break through 26,168 required to negate that bearish outlook.
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.
