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Levels to watch: FTSE, DAX and Dow

The indices are showing signs of a resurgence following the recent risk aversion. Once more it appears to be the US markets which are leading the way higher.

IG Analyst

Publication date : 2017-08-14T09:05:20+0100

Market data

Source: Bloomberg

FTSE 100 rallies towards double bottom neckline

The FTSE 100 has been regaining ground this morning, following on from a sharp deterioration in the week just gone. The 7341 level represents the neckline of a double bottom, where an hourly close above that level would provide a bullish outlook for the day.

Until then, the downtrend remains intact.

FTSE 100 chart

FTSE 100 chart

FTSE 100 chart

DAX retracing recent weakness

The DAX is moving sharply higher, following a sell-off into the key 11,941 support level. We have seen the price pass through the 50% retracement, with the 61.8% and 76.4% levels up ahead.

Given that we are seeing a move higher from such a crucial support level, there is a possibility that this market will bottom out from here. However, for that to become a greater possibility, we would need a break up through 12,338. Until then, there is a good chance we will see this market turn lower once more.

DAX chart

DAX chart

DAX chart

DAX chart

Dow rallying through key resistance level

The Dow Jones is regaining ground this morning, with risk appetite improving. Crucially we have seen the price move through the 21,968 swing high. This provides a more bullish outlook, with the next major hurdle coming at 21,995.

For now, watch out for an hourly close above 21,968 to solidify the renewed bullish outlook. We would need a move back below 21,815 to continue the recent downtrend.

Dow Jones chart

Dow Jones chart

Dow Jones chart

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