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Levels to watch: FTSE 100, DAX and Dow

Wednesday saw a rebound from the lows, and further gains have followed this morning, maintaining the current rally from the lows of last week.

FTSE 100 renews its push higher

The FTSE 100 remains below the highs of Wednesday’s session, but for now the sequence of higher lows is intact.

Above 7100, the price heads towards the 7220 area that marked the lows at the beginning of September. A break below 7040 signals more short-term weakness, breaking rising trendline support from the lows of last week and potentially opening the way to 6920.

DAX continues its recovery

The DAX saw a sharp rally through Tuesday into Wednesday, and while a pullback has followed, it has held around 11,700.

Further gains target 11,800 and then 11,851, and once this has been cleared 12,100 comes into view. A move below 11,660 would target 11,430.

Dow bulls retain control

The Dow Jones dipped back from the high of the week around 25,850, but found support around 25,800.

From here we have seen a general recovery, maintaining the rising trend from the lows of last week. A close below 25,400 is needed to negate this bullish view, with 25,850 and then 26,300 as upside targets.

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