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Levels to watch: FTSE 100, DAX and Dow

FTSE 100 begins to turn higher, following a move into Fibonacci support. Meanwhile, the DAX and Dow still have some questions that need answering, for the bullish outlook to return.

IG Analyst

Publication date : 2017-12-05T09:44:00+0000

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Data

Source: Bloomberg

FTSE 100 rallying from 76.4% retracement

The FTSE 100 has managed to push through the notable 7369 swing high this morning, following on from a 76.4% retracement. This comes off the back of a broader retracement into the 76.4% retracement level at 0.7288.

This wider picture points towards a near-term recovery, with the overnight rally seemingly providing the first step in a bullish story. Ultimately, from a wider perspective, we would need a break below 0.7195 to negate the bullish outlook.

FTSE 100 chart

FTSE 100 chart

FTSE 100 chart

DAX rallies into trendline resistance

The DAX has managed to push into trendline resistance this morning, following on from a sharp sell-off in the back end of last week.

The ability to break through 13,118 will be key to determining whether we are set to follow up these gains with another move higher. Until then, there is a chance that we could retrace once again, given the trendline of lower highs in place.

DAX chart

DAX chart

DAX chart

Yesterday’s Dow strength proved short-lived

The Dow Jones erased much of yesterday’s gains overnight, with the price largely closing the gap created over the weekend.

The overnight low of the 24,267 level is going to be key here, with a break below that providing a more bearish shift for the short term. Until then, it will be crucial to see if the price rallies through this morning’s high of 24,390, or breaks below 24,267.

Dow Jones chart

Dow Jones chart

Dow Jones chart

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