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Levels to watch: FTSE, DAX and Dow

With the election upon us, it could be a quieter day for markets. However, yesterday’s big bounce has put markets on a bullish footing, which is holding for now. 

CFDs are a leveraged product and can result in losses that exceed deposits. Trading CFDs may not be suitable for everyone, so please ensure you fully understand the risks and take care to manage your exposure.
Data on screen
Source: Bloomberg

FTSE 100 eyes early October high

Yesterday’s bounce is consolidating above 6800, and while we may see some caution, as long as the price holds above 6700 the move higher looks assured (barring a surprise in the US election).

Upside targets for the FTSE 100 would be 6895, the 50-day simple moving average (SMA), and then on to 7134 and the early October high. 

DAX could test 50-hour SMA

Here too the bounce looks to be preparing for another push higher, although a test of the 50-hour SMA towards 10,360 could bring in fresh buyers.

The next goal is for the index to get back above the rising trendline from late June, above 10,640. This would then clear the way for another test of 10,800.

Dow Jones could see 18,400

The gap up has put the index back inside the range that prevailed in September and October, in the 18,000 to 18,400 area.

With the hourly chart still indicating oversold momentum indicators, it might be hard for the price to push on. But, so long as 18,000 holds we should expect additional upside, as the US market gears up for the pre-Thanksgiving period when bullishness tends to prevail. 

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CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.