Levels to watch: FTSE, DAX and Dow

European indices are recovering this morning, after a poor finish to last week.

City of London skyline
Source: Bloomberg

FTSE starts week positively

Despite a weak session on Friday the index showed no inclination to go near the 6000 level, bouncing higher and continuing these gains early on in Monday’s session. First intraday resistance is likely around 6103, followed on by 6221. Until the index gets back above 6221, we remain in a consolidation phase, with 6000 and then 5830 support on the downside. 

FTSE 100 chart

DAX eyes 10,193 after clearing 10,000

The DAX too has found the energy to move higher, putting itself back above the 10,000 level once again. Now we look to see if it can breach 10,193 and then move on towards 10,375. Much attention will be given to the ‘death cross’ on the daily chart, as the 50-day crosses below the 200-day, but so long as the index holds above the late-August lows I am still relatively optimistic about further gains. I would like to see the index get back above the July bottom around 10,685, but for the time the steep uptrend line off the August lows remains intact. 

DAX chart

Dow recovery supported by 16,000

A recovery is underway in US indices too, with futures still trading despite the US national holiday today. Once again 16,000 continues to act as the downside barrier, and so we look to see if the index can now move back towards 16,528 and then 16,673. 

Dow Jones chart

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