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CFDs are complex instruments. 70% of retail client accounts lose money when trading CFDs, with this investment provider. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money.
CFDs are complex instruments. 70% of retail client accounts lose money when trading CFDs, with this investment provider. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money.

FTSE 100, DAX and Dow rally after brief pullback

FTSE 100, DAX and Dow rebound despite yesterday’s coronavirus fueled decline.

FTSE 100 board Source: Bloomberg

FTSE 100 rebounds from confluence of support

The FTSE 100 declined into our trendline and Fibonacci confluence zone, with the index subsequently turning higher.

This points towards the recent decline being a likely retracement rather than a reversal, with a drop below 7474 required to bring a wider bearish picture. As such, further short-term upside seems likely. However, with major trendline and horizontal resistance up ahead, significant hurdles remain that could stifle such gains.

FTSE 100 chart Source: ProRealTime
FTSE 100 chart Source: ProRealTime

DAX surges after 61.8% retracement

The DAX managed to drive through trendline resistance overnight, following a sharp and brief pullback into the 61.8% Fibonacci support level.

Crucially, this rally has taken us through the previous record high, raising the likelihood of further upside to come. As such, another bout of gains looks likely from here, with a bullish outlook in play unless we see a break below 13,361 support.

DAX chart Source: ProRealTime
DAX chart Source: ProRealTime

Dow rallies into crucial 29,349 resistance level

The Dow Jones has managed to rebound into the crucial 29,349 resistance level overnight, with the hourly chart highlighting the importance of this threshold.

A break through this level would bring a renewed bullish outlook for the index. Until that happens, there is a chance we could drift lower from this level. Given the fact that we no longer create lower highs, it is likely that any short-term downside would be a precursor to further gains. As such, a bullish outlook is in play unless we see a break below 29,150.

Dow Jones chart Source: ProRealTime
Dow Jones chart Source: ProRealTime

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