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Levels to watch: FTSE 100, DAX and Dow

The FTSE 100 is leading the losses, with the DAX and Dow consolidating after recent gains.

IG Analyst

Publication date : 2018-08-30T08:50:17+0100

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FTSE 100 looks set for further losses

The FTSE 100 has sold off sharply following the GBP rally yesterday, with the index dropping below the crucial 7520 mark this morning.

That brings us into a more bearish territory once again, following on from the retracement into the 200-day simple moving average (SMA). With that in mind, watch for further downside from here, with rallies being sold into.

FTSE 100 price chart

FTSE 100 price chart

FTSE 100 price chart

DAX continues to consolidate at Fibonacci resistance

The DAX has been consolidating after rallying into the 61.8% retracement. There is a good chance that we will see the index start to weaken today, with a break below 12,493 providing a bearish signal for the near term.

A break back up through Tuesday’s high of 12,600 would point towards a rally into 76.4%, while a drop below 12,493 would signal a more bearish shift.

DAX price chart

DAX price chart

DAX price chart

Dow consolidates after recent rally

The Dow Jones has slowed in its ascent, following a boost earlier in the week thanks to the trade deal with Mexico. This consolidation does raise the chance of a retracement of the rally from 25,606.

Watch for a fall below 26,032 as a signal of such impending price action. Until then, there is a chance we could break higher once more, with the wider bullish outlook remaining in play irrespective of whether we see a short-term pullback or not.

Dow Jones price chart

Dow Jones price chart

Dow Jones price chart

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