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Levels to watch: FTSE 100, DAX and Dow

Yesterday’s decline for the indices has been arrested for now, with the price heading back into key resistance. This provides us with clear hurdles to overcome to bring back the bullish outlook.

Joshua Mahony JMahony_IG
Senior Market Analyst, London

2017-11-14T09:09:14+0000

Wall Street

Source: Bloomberg

FTSE 100 regaining ground after sell-off

The FTSE 100 has started to regain ground this morning, coming off the back of a strong sell-off yesterday. That move lower brought the price back below the 7428 support level, providing a strong possibility of a wider sell-off before long.

However, for now, we are seeing the price move back towards trendline and simple moving average (SMA) resistance. As such, while we could see further short-term upside, a break above 7475 would be required to provide confidence of a bullish move for the index.

FTSE 100 chart

FTSE 100 chart

FTSE 100 chart

DAX back into trendline resistance

The DAX has managed to regain ground overnight, with the price moving into trendline resistance. The confluence of the 76.4% retracement, trendline, and SMA (50-hour) resistance provides us with a clear hurdle to overcome.

We would need to see a break above 13,164 to provide us with a bullish outlook. Until then, the reaction to the 76.4% retracement, trendline, and SMA confluence is going to be key to determining where we go from here.

DAX chart

DAX chart

DAX chart

Dow attempting to break key resistance zone

The Dow Jones is back at trendline resistance, following a move back into the 23,324 support zone.

With the price attempting to break higher, the key is whether we see an hourly close above 23,460, to signal a bullish shift for the index.

Dow Jones chart

Dow Jones chart

Dow Jones chart

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