Levels to watch: FTSE, DAX and Dow

A sharp reversal in the US yesterday has dented hopes of pre-Christmas gains, but bullish momentum is still evident, if weaker than before. 

Trader monitoring screens
Source: Bloomberg

FTSE 100 still looking bullish – just
While the index has given back most of its gains from yesterday, it has managed to hold above support around 6050, and thus still gives the appearance of bullish momentum.

It will need to push back through 6140 to put the week’s upward trend back on track, but if this does occur then we look towards 6200 and then 6240. Downside targets lie around 6040 and then 6002. 

DAX progress stalls
The 2015 trendline did its job yesterday, stalling progress around 10,820, so this is the key area to watch in coming sessions. For now the index is holding above the 10,600 area, which means the outlook remains cautiously bullish, with 11,000 still the natural target if gains can accelerate today. Support is likely around 10,514 and then 10,368.

Dow dropping
The index fell back through the rising trend that had persisted until yesterday evening, rapidly losing ground and punching through support around 17,500.

We will be looking to17,300 and then Monday’s low around 17,168 as the support areas to watch out for. Upside targets are to be found in the region of 17,520 and then 17,690, with a move above 17,800 clearing the way for more gains. 

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