Levels to watch: FTSE 100, DAX and Dow

Indices begin to turn lower, as profit taking takes hold on the completion of the US tax reforms.    

Wall Street
Source: Bloomberg

FTSE 100 rebounds from key support level

The FTSE 100 is regaining ground, following a rebound from the key 7511 support level. That level represents the peak from last week, with a break back below crucial to highlighting that further downside is on the cards.

An hourly close below 7511 would point towards a wider retracement, with the 61.8% (7482) and 76.4% (7463) in view. Alternately, an hourly close above 7535 would signal a more bullish picture.  

DAX breaks back down towards 13,000

The DAX has tumbled back towards the crucial 13,006 support level this week, despite early gains.

The ability to post an hourly close below that level will be key to today’s trade, given that it would negate the creation of higher highs and higher lows in place throughout December. 

Dow threatening double top follow through

The Dow Jones is seeking profit, taking drive a move lower.

An hourly close below 24,713 is key to signaling a possible wider move lower towards the 24,596-24,649 Fibonacci support zone. As such, the reaction to the 24,693-24,713 zone will be crucial to price action for the Dow Jones today.

The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication.