Levels to watch: FTSE 100, DAX and Dow

Indices recover from a sharp move lower yesterday, yet with the likes of the DAX testing key support, the weakness may not be over yet.

FTSE 100 falls below near-term support

The FTSE 100 has dropped below 7535 yesterday evening, providing a greater possibility of further downside in the short term.

Should the price break back above the 7564 mark, then this possibility would be largely negated. However, another move lower, and a break below yesterday’s low of 7527, would point towards the beginning of a period of retracement, where 7511 would mark the next key support level. 

DAX turns lower into key support level

The DAX has turned lower this morning, following on from a similar move yesterday.

Crucially, we are seeing the price move back into yesterday’s low of 13,197, where a break below this level would signal a likely extension to the downside. As such, today’s price action will be dictated by the ability to stay above 13,197.

Dow moving higher from trendline support

The Dow Jones is turning higher from trendline support this morning, with the index getting a boost from the successful senate vote.

This points towards a likely move back to the previous highs of 24,875. A bullish outlook remains in place, unless we see a break below 24,713.

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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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