Levels to watch: FTSE 100, DAX and Dow

Indices rebound after last week’s sell-off, yet with near-term resistance appearing, we will need further gains to provide a more bullish weekly view.

Trader
Source: Bloomberg

FTSE 100 rebounds towards double bottom neckline

The FTSE 100 has moved sharply higher this morning, following on from last week’s deterioration.

There is a good chance we will see a more protracted rebound, with the ability to break above 6953 the key to providing a bullish short-term view. Until then, there is still a chance of further downside.

DAX gaining ground from key support

The DAX has been turning higher following a drop into the ascending trendline dating back to early February.

There is a strong chance that we will see the price retrace the wider sell-off, with a bullish confirmation coming with an hourly candle closed above the 12,003 swing high. On the flip side, should we see an hourly close below 11,756 support, this would point towards a bearish continuation picture.

Will Dow rebound last?

The Dow Jones has seen some gains coming into play this morning, following a drop below the 76.4% retracement.

That inability to respect the Fibonacci support points towards the potential for further downside. However, whether we start to see a more bullish short-term view is reliant upon the ability to post an hourly close above 24,110. 

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