Levels to watch: FTSE 100, DAX and Dow

Indices begin to turn lower, as profit taking takes hold on the completion of the US tax reforms.    

Wall Street
Source: Bloomberg

FTSE 100 rebounds from key support level

The FTSE 100 is regaining ground, following a rebound from the key 7511 support level. That level represents the peak from last week, with a break back below crucial to highlighting that further downside is on the cards.

An hourly close below 7511 would point towards a wider retracement, with the 61.8% (7482) and 76.4% (7463) in view. Alternately, an hourly close above 7535 would signal a more bullish picture.  

DAX breaks back down towards 13,000

The DAX has tumbled back towards the crucial 13,006 support level this week, despite early gains.

The ability to post an hourly close below that level will be key to today’s trade, given that it would negate the creation of higher highs and higher lows in place throughout December. 

Dow threatening double top follow through

The Dow Jones is seeking profit, taking drive a move lower.

An hourly close below 24,713 is key to signaling a possible wider move lower towards the 24,596-24,649 Fibonacci support zone. As such, the reaction to the 24,693-24,713 zone will be crucial to price action for the Dow Jones today.

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