Levels to watch: FTSE 100, DAX and Dow
Short-term weakness for stocks provides us with a potential buying opportunity.
FTSE 100 pullback brings potential buying opportunity
The FTSE 100 is weakening in early trade, coming off the back of a short-term resurgence through the latter part of last week.
While there is a good chance that this recent resurgence is a retracement of the sell-off from 7263, there is likely to be further upside to come. Thus, the pullback we are currently seeing is expected to be fleeting, with a break below 7095 required to bring about the bearish view once more. Until then, another leg higher looks likely before long.
DAX turning lower from key resistance level
The DAX has enjoyed a good run of late, with the price seemingly respecting this 11,693 support level dating back to early-2018.
The ability to break through that level is key to retaining the bullish sentiment that has dominated the past three weeks. Keep an eye out for the 11,586 swing low, which provides the first hurdle that needs to be overcome if a more bearish picture is to emerge.
Dow in retracement mode
The Dow Jones has similarly been moving lower since pushing higher last week, with the index looking likely to drift lower over the near term.
However, looking at recent price action, we seem to have bottomed out, and thus a push through the 26,168 peak looks likely before long. As such, any further downside looks like a buying opportunity unless we see a break below 25,911.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. 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. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Seize your opportunity
Deal on the world’s stock indices today.
- Trade on rising or falling markets
- Get one-point spreads on the FTSE 100
- Unrivalled 24-hour pricing
See opportunity on an index?
Try a risk-free trade in your demo account, and see whether you’re on to something.
- Log in to your demo
- Try a risk-free trade
- See whether your hunch pays off
See opportunity on an index?
Don’t miss your chance – upgrade to a live account to take advantage.
- Get spreads from one point on the FTSE 100
- Trade more 24-hour indices than any other provider
- Analyse and deal seamlessly on smart, fast charts
See opportunity on an index?
Don’t miss your chance. Log in to take your position.
Live prices on most popular markets
- Equities
- Indices
- Forex
- Commodities
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
