CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Please ensure you fully understand the risks involved. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Please ensure you fully understand the risks involved.

Levels to watch: FTSE 100, DAX and Dow

Indices have managed to regain some ground following recent losses, but with key support up ahead we are not out the woods quite yet.

FTSE 100 rallying into potential deeper retracement

The FTSE 100 looks set to head back into the highs of yesterday, as the index continues to gain ground amid a downturn that has dominated trade over the past fortnight.

That downtrend remains in place unless we break above 7696, pointing towards a strong chance that the current strength we are seeing is a precursor to further downside.  With that in mind, watch for a potential rally into the 76.4% retracement, with a bearish outlook in play unless we break through 7697 resistance.

DAX starting to look more bullish

The DAX managed to push through the 12,357 swing high yesterday, bringing with it a possible shift in sentiment.

With the index heading higher this morning, there is a real chance we will break above yesterday’s high of 12,441, paving the way for further upside. As such, look for a rally through that level to bring a bullish outlook, while a fall below 12,124 would bring a more bearish bias once more.

Dow consolidating after 76.4% sell-off

The Dow Jones sold off from the 76.4% retracement yesterday, paving the ground for a continuation of the downtrend we have seen of late.

However, with the index failing to break below 24,085 once again, there is a chance we could see a short-term rebound. However, we would need to see a break above yesterday’s high of 24,573 to negate this bearish trend. Meanwhile, watch for a move below 24,085 to confirm the impending continuation of the recent downtrend. 

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