Levels to watch: FTSE, DAX and Dow

Buyers are back in charge this morning, thanks to Mario Draghi and his calming words.

German Stock Exchange
Source: Bloomberg

FTSE 100 could bounce to 6100

The index is now more than 4% off its lows of the week, as buyers have returned.

The move back above 5800 has cemented the more bullish case for the short-term, with upside targets around 5920 and then to 6000 itself.

If the index were to continue to follow the current descending channel, it may bounce as far as 6100, before potentially turning lower.

The European Central Bank has bought time for the bulls, but the overall trend in the longer term remains down. 

DAX buyers await 9580 pullback

The day opens with the index already enjoying a decent gain, but with the price somewhat extended from the rising hourly trendline, a pullback towards 9580 would be both unsurprising and also afford the chance for some buyers to hop on the trend if they missed yesterday’s move.

On the daily chart the next targets are around 9860 and then 10,060. 

Dow dips to 15,950 could tempt buyers

The recovery above 16,000 and the firm bounce off the lows of August puts the index back on an upward trajectory.

Now we look in the longer term towards 16,255 and then 16,467, which, given the move of recent sessions would not take long at all.

Dips back towards 15,950 and the rising hourly trendline should bring out fresh buyers. 

This information has been prepared by IG, a trading name of IG Markets 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.