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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

FTSE 100, DAX and Dow likely to turn lower from Fibonacci resistance

FTSE 100, DAX, and Dow have been on the rise. However, with Fibonacci resistance coming into play, a bearish turn looks likely from here.

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FTSE 100 rebounds, yet bearish trend remains

The FTSE 100 has been regaining ground over recent trading days, with the index claiming back some of the ground lost in the first half of last week.

However, the decline below 7064 last week points towards a potential bearish shift coming back into play before long. With that in mind, it is worthwhile watching out for Fibonacci resistance at 7195 and 7237. It makes sense to expect further downside before long, with a break through 7305 required to negate this bearish outlook.

FTSE 100 chart Source: ProRealTime
FTSE 100 chart Source: ProRealTime

DAX on the rise, yet bears could come back in once more

The DAX has been on the rise since Thursday’s low, with the index rising into the 76.4% Fibonacci resistance level this morning.

With the continued creation of lower highs in play, this looks like a prime candidate for a reversal. As such, a bearish turn looks likely from here, with a rise through 11,862 required to negate this bearish outlook.

DAX chart Source: ProRealTime
DAX chart Source: ProRealTime

Dow rallies into Fibonacci resistance

The Dow Jones has similarly gained ground over recent trading days, with the index also rising into the 76.4% Fibonacci retracement level.

Once again, this could bring about a bearish turn from here, where a rise through 26,426 would be required to bring about a more bullish outlook. For greater bearish confirmation, watch out for a break back below the 80 level on the stochastic oscillator.

Dow Jones chart Source: ProRealTime
Dow Jones chart Source: ProRealTime

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.

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