FTSE 100, DAX and Dow at risk of another move lower
FTSE 100, DAX and Dow are at risk of further losses, as recoveries fail to gain enough traction.
FTSE 100 looks at risk of another move lower
The FTSE 100 has been gaining ground at the beginning of the week, with the index attempting to push out of an intraday downtrend that was in play the week prior.
That trend of lower highs and lower lows comes into question given the recent respect of the 76.4% support level at 7145. A break through 7198 would bring about a more bullish outlook, yet the fading momentum on this rally does raise the possibility of another leg lower to continue this bearish trend.
DAX rallies towards key bullish breakout level
The DAX has managed to rally away from the crucial 12,599 support level, where a break below that point would have provided us with a bearish head and shoulders formation.
With that now seemingly off the card, we have seen the price move into the 12,818 resistance level. A break above that level would bring about a bullish continuation signal. As such, watch out for whether we can see a break through 12,818 as sign that the recent uptrend is set to continue.
Dow at risk of another leg lower
The Dow Jones has been tentatively regaining ground following Friday’s declines, with the index rallying through the 26,875 level yesterday.
However, despite that break there is a strong chance that we are setting ourselves up for another bearish phase given the lack of conviction evident within this recovery. The shallow slant of this rally could signal that this is simply a pause before the bears come back into play once more. For confirmation of this, watch for a break below 26,742.
This information has been prepared by IG, a trading name of IG Markets Ltd and IG Markets South Africa 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.
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
Prices above are subject to our website terms and agreements. Prices are indicative only
