FTSE 100, Dax and Dow Rebound from Recent Lows

Article by IG Chief Market Analyst Chris Beauchamp

FTSE 100, DAX 40, Dow Jones Analysis and Charts

​​​FTSE 100 testing 7400

​The index managed to rebound on Tuesday, recovering some losses. ​For a low to be formed, we would need to see additional gains towards 7450, which might then bolster a near-term bullish view and open the way towards the 200-day SMA.

​A close back below 7310 would negate this view.

FTSE 100 Daily Chart

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Change in Longs Shorts OI
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Dax rebounds from low

​Tuesday saw the index make some headway, building on Monday’s dip below and then recovering above 14,700. ​While this has halted the selling for now, further gains back above 15,000 would be needed to suggest that a low is in. This might then allow the index to target trendline resistance from the August highs, as well as the 50-day SMA.

​ ​A close below 14,750 might cancel out this bullish view for the time being.

DAX40 Daily Chart

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Dow makes headway

​Like other indices, the Dow staged a recovery on Tuesday, but it is not yet certain that a low has been formed. ​Any continued recovery targets the 200-day SMA and then the October highs around 34,000. A close above 34,100 might signal that a broader rally was underway.

​A close below the September lows would signal that the sellers have regained control.

Dow Jones Daily Chart

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