Levels to watch: FTSE, DAX and Dow

Indices have recovered from a choppy day yesterday, but are still trapped below key levels.

US trader
Source: Bloomberg

FTSE 100 eyes 6020

Yet again we find ourselves at 6000. If the index can push on above here, ideally through 6020 (which stemmed progress over the past two days), then the way is clear to test the area around 6082 and then 6140.

Dips towards the rising trendline around 5950 may bring out the buyers; only a firm move below 5900 would suggest that the rally has run its course.

DAX could move to 9900

Selling yesterday ran out of steam around 9600, as it did on Tuesday, so this is the first area of support to watch if the index falters.

The 9843 mark is the next area to watch and then on through 9900, with a close above the latter putting the index on course for 10,032 and then 10,200.

While yesterday’s price action suggested the index might be going lower, with the drop below the rising hourly trendline and then an attempt to move back above it early on in the session this morning, only a firm move below 9530 would suggest that a new leg lower is underway.

Dow could drop to 15,990

The high water mark for the week was above 16,200, and again the index is showing skittishness around this level. A break above it would head towards 16,300 and then 16,500.

Further weakness could see the index drop back as far as 15,990 and still be above the rising hourly trendline. 

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