Levels to watch: FTSE, DAX and Dow

Despite early losses, the indices are bouncing from key support levels. The rangebound market continues.

Traders in a German stock exchange
Source: Bloomberg

FTSE moving into key Fibonacci retracement
The FTSE is moving sharply lower this morning, following on from a rally into the 6180 area yesterday. The index has been in a range in recent weeks and as such, it was always likely this recent rally was on borrowed time.

Of particular interest was the break below 6121 this morning, with price subsequently rallying from the 6108 support level. It is notable that we are unlikely to see an hourly close below this support level though, which could be a warning sign the rally is not over.

Despite this, selling into this rally is favoured, with 6158 (76.4%) representing a good 3/1 risk/reward for a move back to 6107 rather than breaking through 6173. Should we see further downside, support levels of note are 6108 and 6095, on the way to the range bottom of 6060.

Should price break back through 6173, then the 6200- 6220 resistance zone is likely to mark the top of this rally. 

DAX bounces from key support zone
DAX continues to range, with yesterday’s brief foray above 9964 subsequently leading to a move back to the bottom end of the range this morning.

The current bounce is likely to persist should we see an hourly close above 9852, which would subsequently look towards the range top around 9950.

Dow rallying from support once more
The Dow Jones is also rangebound over the past week, with the current move coming from a clear support zone between 17,458 and 17,468.

With price currently breaking through 17,511, an hourly close above here could set us up for another move into 17,550-17,564 resistance. 

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