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Levels to watch: FTSE 100, DAX and Dow

The indices seem to be turning around, with deep retracement pointing towards the potential creation of higher lows.

IG Analyst

Publication date : 2018-02-12T09:27:21+0000

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FTSE 100 rebound could point towards market bottom

The FTSE 100 managed to rebound without breaking below the 6919 low last week, with the price rising above the 7169 resistance level.

The potential higher low brings about a considerable possibility that we have seen a bottom for the FTSE 100, with a rally above 7312 providing greater confidence that this is the case. For now, with the price consolidating, we need to see whether the price will retrace the Friday evening rally or simply push onwards from here. Conversely, a break below 6979 would raise the possibility of another sell-off for the index.

FTSE 100 price chart

FTSE 100 price chart

FTSE 100 price chart

DAX rebounding from deep retracement

The DAX managed to post a nice deep 76.4% retracement last week, before beginning to show signs of a bullish resurgence.

With the price pushing higher from a period of consolidation, there is a good chance we could see this recovery continue to take shape from here. A break below Friday’s low of 11,910 would provide a warning sign, but until that happens, there is a strong possibility we will see the index push higher as the week progresses.

DAX price chart

DAX price chart

DAX price chart

Dow heads higher as it builds on recent resurgence

The Dow Jones is similarly moving higher, as it builds off the back of a deep retracement on Friday.

In order for a more confident bullish view, the next swing high to break is at 24,956, which is followed by 25,298. Ultimately, we need to remain above Friday’s low of 23,358 to remain bullish.

Dow Jones price chart

Dow Jones price chart

Dow Jones price chart

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