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Levels to watch: FTSE 100, DAX and Dow

IG Analyst

Publication date : 2018-09-14T09:34:05+0100

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FTSE 100 seeking to extend retracement

The FTSE 100 has been regaining ground this morning, as the index seeks to take back what was lost last week. That wider bearish trend does come into question given the wider retracement into the 61.8% Fibonacci level at 7247.

However, with trendline and horizontal resistance up ahead around 7325, there is a notable hurdle to overcome for this short-term bullish rebound to build any sense of purpose. Look for an hourly close above that level to point towards a more bullish end to the week.

FTSE 100 price chart

FTSE 100 price chart

FTSE 100 price chart

DAX breaks notable resistance amid rebound

The DAX has been regaining ground in the second half of the week, with the index pushing past the notable resistance level of 12,111 once again this morning.

This points towards further upside to come, with any decent sized retracement still some way from the current price. Thus, look out for a rally into Fibonacci resistance for the short term. We would need to see a break above 12,600 to provide a wider bullish recovery signal. Until then, there is a good chance that this rally falls short at either the 50%, 61.8% or 76.4% retracement.

DAX price chart

DAX price chart

DAX price chart

Dow breaks higher to leave doubts behind

The Dow Jones has managed to break above the 26,168 resistance level today, bringing an end to the retracement seen throughout the first week of September.

That pullback took us close to the 76.4% retracement, yet we are now back on the front edge of the trend, seeking to put in another higher high. As such, further upside looks likely from here, before we retrace once again. With that in mind, a bullish view holds unless we see a break below the 25,749 swing low.

Dow Jones price chart

Dow Jones price chart

Dow Jones price chart

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