Equity Analysis and News
- Dow Jones | Upward Trajectory Remains Intact Despite Stalling in the Short Term
- FTSE 100 | Bull Trap?
- DAX | Upside Looks Exhausted Following False Upside Break
Source: Thomson Reuters, DailyFX
Dow Jones | Upward Trajectory Remains Intact Despite Stalling in the Short Term
Modest losses for the week with the Dow Jones easing some 0.6% having failed to consolidate above 28000. Consequently, with the index stalling in the near term, we look to support at the 23.6% Fibonacci retracement (27588) before a continuation of its bullish trajectory, given that momentum indicators (DMI) continue to tilt towards the upside.
Dow Jones Price Chart: Daily Time Frame (Oct 18 – Nov 19)
FTSE 100 | Bull Trap?
A sizeable bounce back (largest intra-day gain since Jul’29th) in the FTSE 100 to close out the week in positive territory. However, with trend signals (ADX) have yet to confirm the uptick in the index, we see this move as a possible bull trap and thus expects gains to be limited by the descending trendline at 7375. A fade in the index brings support at 7261 into focus, which marks the 38.2% Fibonacci retracement.
FTSE 100 Price Chart: Daily Time Frame (Sep 2018 – Nov 2019)
FTSE 100 DMI and ADX Indicators
DAX | Upside Looks Exhausted Following False Upside Break
Increased signs of exhaustion in the DAX following the false upside break through 13300. Consequently, the DAX looks to be at risk of a pullback with focus on support at 13000. As price action remains somewhat muted in the index, we see 13000 holding barring any notable shock on the trade war front. That said, failure to maintain 13000 would open up the doors for a move towards 12792 (76.4% Fibonacci retracement).
DAX Price Chart: Daily Timeframe (Nov 2017 – Nov 2019)
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--- Written by Justin McQueen, Market Analyst
To contact Justin, email him at Justin.mcqueen@ig.com
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