Levels to watch: FTSE 100, DAX and Dow
Indices stage a rebound after a bout of recent losses. However, the picture remains bearish and this looks like a potential selling opportunity.
FTSE 100 rebound looks like a temporary retracement
The FTSE 100 has managed to put together a rebound overnight, coming off the back of a notable breakdown and double top completion.
The recent rally has brought the index back into the 7268 neckline from that pattern. Whether we respect that level or not, this rebound is expected to provide us with a retracement of the decline from 7371. As such, short-term upside could occur, yet a bearish outlook remains unless we see a break through 7371.
DAX expected to continue declines of past week
The DAX has similarly seen significant downside over the course of the past week, with price creating lower highs and lows.
That points towards the current rise as being another retracement, with further downside looking likely before long. A break through 12,214 would negate that bearish outlook, while a fall below 11,824 would bring a bearish signal for the medium term rather than the short-term downtrend currently in play.
Dow rebound looks destined to falter once more
The Dow Jones is also moving higher off the back of recent declines.
Coming off the back of a breakdown below the double top neckline of 25,556, it looks like we are within a retracement period, where a break through 25,957 would be required to negate the current bearish pattern. However, it is notable that for the index to look truly bearish, we would need to see a drop below the 25,220 low from March and May.
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.
