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Levels to watch: FTSE 100, DAX and Dow

Indices rebound after last week’s sell-off, yet with near-term resistance appearing, we will need further gains to provide a more bullish weekly view.

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Source: Bloomberg

FTSE 100 rebounds towards double bottom neckline

The FTSE 100 has moved sharply higher this morning, following on from last week’s deterioration.

There is a good chance we will see a more protracted rebound, with the ability to break above 6953 the key to providing a bullish short-term view. Until then, there is still a chance of further downside.

FTSE 100 chart

DAX gaining ground from key support

The DAX has been turning higher following a drop into the ascending trendline dating back to early February.

There is a strong chance that we will see the price retrace the wider sell-off, with a bullish confirmation coming with an hourly candle closed above the 12,003 swing high. On the flip side, should we see an hourly close below 11,756 support, this would point towards a bearish continuation picture.

DAX chart

Will Dow rebound last?

The Dow Jones has seen some gains coming into play this morning, following a drop below the 76.4% retracement.

That inability to respect the Fibonacci support points towards the potential for further downside. However, whether we start to see a more bullish short-term view is reliant upon the ability to post an hourly close above 24,110. 

Dow Jones chart

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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.