Levels to watch: FTSE, DAX and Dow

Indices are fighting to gain ground this morning, after a bearish session yesterday. 

Source: Bloomberg

FTSE 100 eyes 6200

Yesterday’s sharp drop took the index to its lowest level since mid-November. A small bounce overnight puts the index back on course for resistance around 6200, and if this is broken we can look towards targets at 6200 and then 6220.

Further downward moves will hit the bottom end of the daily rising channel around 6095, at which point we will see whether the index can repeat the feat of 16 November, when it bounced strongly.

If the bottom end of the channel is broken then support at 5960 will become the next target, followed by 5900.

DAX could find support at 10,500

In recent sessions dips towards 10,600 have brought out buyers, with 10,650 acting as the chief nexus of support.

Until this is broken we may not see further significant downside. However, buyers need to push rapidly back above 10,745 and then 10,850 to confirm that a bounce is in progress.

Further downward support for the DAX lies around 10,557 and then 10,500.

Dow could see resistance at 17.728

The 17,500 level continues to act as support here for the Dow Jones, preventing further drops yesterday as it did on 3-4 November. A break below this level would target 17,422 and then 17,200.

A bounce today would first test the descending trendline around 17,650 tested and then see resistance at 17,728 and then 17,875 come into play. 

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