Levels to watch: FTSE 100, DAX and Dow

The FTSE 100 and Dow are showing signs of strength amid recent recovery signals. However, with the DAX reaching Fibonacci resistance, we could see that index diverge with a move lower.

FTSE 100 heading back towards key resistance

The FTSE 100 is heading higher once again this morning, with the continued creation of higher lows and flatlining tops putting further emphasis on the importance of the 7370 mark.

An hourly close above there would point towards further near-term upside. Alternately, a break back below 7334 would point towards a potential fall back, towards the 7280 mark. 

DAX rallies into Fibonacci resistance

The DAX has rallied into the 76.4% retracement level at 13,058, with the index starting to weaken from that point. The creation of lower highs points towards a possible move lower from here.

However, it is worth noting that such downside has repeatedly failed to break lower from the 12,850-12,900 region. For now, unless we break above 13,118, a bearish shift looks likely from here. 

Dow starts to turn higher

The Dow Jones is moving into a more bullish phase, following a near 76.4% retracement. We are seeing that Fibonacci retracement come into play once again this morning.

A short-term pullback into 24,153 will provide a potential temporary buying opportunity, but a break below 24,134 would throw this bullish short-term view into doubt. However, for now, there is a good chance we will move higher from here.  

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This information has been prepared by IG, a trading name of IG Markets Limited and IG Markets South Africa Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. International accounts are offered by IG Markets Limited in the UK (FCA Number 195355), a juristic representative of IG Markets South Africa Limited (FSP No 41393). South African residents are required to obtain the necessary tax clearance certificates in line with their foreign investment allowance and may not use credit or debit cards to fund their international account.

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