Dow Jones, FTSE 100 & DAX Technical Forecast for the Week Ahead

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)

Daily Dow Jones Price Chart

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)

Daily FTSE Price Chart

FTSE 100 DMI and ADX Indicators

FTSE 100 with DMI & 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)

Daily DAX Price Chart

RESOURCES FOR FOREX & CFD TRADERS

Whether you are a new or experienced trader, we have several resources available to help you; indicator for tracking trader sentiment, quarterly trading forecasts, analytical and educational webinars held daily, trading guides to help you improve trading performance, and one specifically for those who are new to forex.

— Written by Justin McQueen, Market Analyst

To contact Justin, email him at Justin.mcqueen@ig.com

Follow Justin on Twitter @JMcQueenFX

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