Levels to watch: FTSE, DAX and Dow

Indices are recovering, thanks to a better finish for US markets.

Data chart
Source: Bloomberg

Can the FTSE climb above 6300?
Yesterday saw the index move and close below the 6300 level, although the crucial 6250 area remains as support. Traders must now wait to see if the price can get back above 6300, or whether it is forming another lower high as part of the current downtrend. Any move through 6250 still suggests at least a move to 6204 and then 6161. 

DAX unable to break above resistance at 10,900
For the DAX, moves through 10,800 continue to be met by more buying, as we saw yesterday, but so far the price is unable to push above resistance around 10,900. Any bounce is likely to be constrained by the long-term downtrend line off the all-time highs of April; this contained bullish momentum in July, August and now this week.

Until we see a daily close below 10,800 the sellers will have to be patient, but such a development would ignite a move to 10,600 and possibly much lower.

Dow recovery leads to bearish momentum
A recovery last night indicates that 17,650 is the area to watch for bearish momentum for the time being, leaving this index in consolidation mode.  

Unlike other indices, there is plenty of possible support for the Dow Jones, with moves back towards 17,650, 17,600 and 17,550 all likely to see buyers come back in. Upside targets lie around 17,900 and then on to the November high around 17,980.

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