Levels to watch: FTSE, DAX and Dow

Another day of gains seems to be in prospect, as buyers return to claw back losses from last week.

Traders on the trading floor
Source: Bloomberg

FTSE 100 looking more optimistic
The push off the lows continues, taking the index through the downward trendline on the hourly chart. A move through 6000 would complete the more optimistic picture, allowing the index to target 6057 and then on towards 6200, erasing some of the losses of the recent past.

A drop back below 5925 today would suggest this short bounce has come to an end, and would mean that the battle for 5900 is in progress once again. 

DAX marches relentlessly on
The DAX continues to lead the way, marching on towards 10,151 and then 10,281, having added nearly 500 points since the lows on Monday.

Worryingly for DAX bulls, we may be in a downward channel from the highs of early December, with the bounce from Monday’s lows coming off the bottom end of the channel. The rally could go as far as 10,400 but still be in this declining trend.

However, with daily momentum indicators rising along with the price, it seems that for now the selling has stopped.

Dow climbs higher
Here too the march higher continues, and now we look towards 16,625 and then 16,776. A steady rising trend is in evidence on the hourly chart, so dips back towards 16,430 should continue to be bought. Expectations of further gains would be negated if the price drops back below the lows of Tuesday, sub-16,265.

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