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DAX, FTSE 100 and IBEX Technical Analysis Forecast

November 14
17:06 2019

Eurozone Index Price Analysis & News

  • DAX | Upside Appears Exhausted
  • IBEX | Political Uncertainty Weighs on IBEX
  • FTSE 100 | Outlook Weakens Following Break of Rising Channel

DAX, FTSE 100 and IBEX Technical Analysis Forecast

DAX | Upside Appears Exhausted

The recent upside in the DAX appears to be stalling with the RSI easing back from overbought territory. As such, with global equities pulling back from recent highs, the DAX is likely to follow suit with the index risking a test of the 13000 level on a closing break below the weekly low of 13142.

DAX Price Chart: Daily Time Frame (Oct 2017Nov 2019)

DAX, FTSE 100 and IBEX Technical Analysis Forecast

IBEX | Political Uncertainty Weighs on IBEX

The IBEX has been among the worst performers throughout the week, dropping 2.15% amid the continued political uncertainty after the fourth election in as many years resulted in a more fragmented parliament. Alongside this, amid the surprise pact between the PSOE and Podemos party to form a minority coalition, Spanish banks and in particular Bankia (60% owned by the state) are likely to be in focus, given that the Podemos are typically in favour of raising taxes for financial transactions, while also against the privatization of Bankia. The index is on course to make a test of the 9000-level following a break below the rising trendline which had stemmed from the August low. Near-term support however, is situated at 9087, which marks the 38.2% Fibonacci retracement.

IBEX Price Chart: Daily Time Frame (Sep 18 – Nov 19)

DAX, FTSE 100 and IBEX Technical Analysis Forecast

FTSE 100 | Outlook Weakens Following Break of Rising Channel

The outlook for the FTSE 100 has weakened having broken out of its rising channel. As we highlighted in the weekly outlook, failure of channel support to hold would leave the index vulnerable for a test of the 38.2% Fibonacci retracement at 7261. Following a brief uptick, the index looks set to make a retest of 7261 with a closing break below raising the risk of a move towards 7200.

50DMA (7280), 100DMA (7285), 200DMA (7334)

FTSE 100 Price Chart: Daily Timeframe (Nov 18 – Nov 19)

DAX, FTSE 100 and IBEX Technical Analysis Forecast

Source: IG Charts

— Written by Justin McQueen, Market Analyst

To contact Justin, email him at [email protected]

Follow Justin on Twitter @JMcQueenFX

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