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Levels to watch: FTSE 100, DAX and Dow

FTSE 100 continues to underperform, while DAX and Dow are in the driving seat. However, with the 76.4% support in play, could we see FTSE 100 rebound?

IG Analyst

Publication date : 2017-09-18T10:02:57+0100

Wall street

Source: Bloomberg

FTSE 100 rallying from 76.4% retracement

FTSE 100 is regaining some composure following a sharp drop at the tail end of last week. The drop below 7300 paved the way for a strong move to the downside. However, with the 76.4% level having clearly provided support around 7200, there is a good chance we could see further upside to come from here.

A break back below 7195 would bring a worrying outlook, with the potential for a move below the key 7088 level. Until then, it looks likely that we could see a rebound into the 7300 resistance level, at which point questions would be asked.

FTSE 100 price chart

FTSE 100 price chart

FTSE 100 price chart

DAX breaks higher from range

The DAX has managed to push higher once more, following a period of consolidation throughout last week. This recent push and break above 12,563 looks to pave the way for a bullish week, with a move back below 12,490 required to negate the bullish outlook.

Until then, further upside looks likely, with 12,678 and 12,735 representing the next major resistance levels.

DAX price chart

DAX price chart

DAX price chart

Dow punches higher after trio of Fibonacci rallies

The Dow Jones has been trading at a new high this morning, and closed out last week in style. This completed three consecutive 76.4% retracements, with each resolving to the upside.

Further upside seems likely, yet with such an extended move higher, it looks like we could see a pullback soon enough. The nearest swing low comes with the minimal point of hesitancy, at 22,092. As long as we do not break below that level, it looks like any downside would provide a buying opportunity.

Wall street price chart

Wall street price chart

Wall street price chart

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