FTSE 100, DAX and Dow lose momentum
FTSE 100, DAX and Dow has lost momentum. But will this mean a bearish or bullish phase is impending?
FTSE 100 rebound loses energy
The FTSE 100 is slowing in its ascent, with the index grinding higher after a strong move higher at the back end of last week.
This decline in momentum could allude to a potential short-term pullback, where a break below 7210 would provide the first signal of such a move. Until that happens, there is still a chance of further upside, with trendline support coming into play once again.
DAX showing signs of bearish reversal
The DAX appears to be topping out, with the failure to break through 61.8% Fibonacci resistance providing an end to the creation of higher highs.
With that in mind, a break below the 13,046 level would bring about a bearish signal for the index, ushering a period of downside to follow up on the double top completed on 2 December.
Dow Jones drifts towards trendline support
The Dow Jones has seen little volatility at the start of this week, with the index gradually drifting towards an ascending trendline formed throughout the past week.
Watch out for further downside for the short term, with a break below trendline support required to maintain this current trend. Until then, there is a good chance that this decline is a precursor to another leg higher. Watch for a break through 28,015 to bring about a renewed bullish outlook.
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
