Levels to watch: FTSE 100, DAX and Dow

Global indices have managed to bounce after recent weakness. However, could we be set for another move lower before long?

FTSE 100 rebounds from support zone

The FTSE 100 has managed to bounce from the bottom end of the 7553-7600 support zone, with the price pushing through the 7659 resistance level.

This points towards a likely further push upwards, in a move that is either a retracement of the downturn from 7796, or the beginning of a full recovery.  A break through that level would signal a likely push on towards the previous highs of 7903. However, until that happens, this short-term bounce could yet be fleeting, with Fibonacci resistance worth watching around 7699 and 7736.

DAX rebound could be short-lived

The DAX briefly fell below the 12,611 mark yesterday, with the index rebounding in what looks like a retracement of the 12,863-12,592 sell-off.

So far we have seen a rally into the 61.8% retracement, and until we break above 12,863, it looks likely that we will break lower again before long.

Dow rallies into 61.8% resistance

The Dow Jones has also managed to rebound this morning, following on from a deep pullback throughout the past week. The wider trend highlights that the likely resolution to this latest pullback will be another move upwards, with the 24,521 retracement level of particular interest.

That points towards the potential for another short-term move lower, with the price having rallied into the 61.8% retracement thus far. As such, there is a chance of another move lower, with a break above 25,007 required to bring about a renewed bullish outlook. 

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